Case Law Details
CA Subodh Maheshwari Vs Institute of Chartered Accountants of India & Anr. (Delhi High Court)
Delhi High Court upholds the decision of Disciplinary Committee of ICAI holding petitioner guilty of professional misconduct as cheques given by Society in good faith were inappropriately encashed.
Facts- A complaint had been filed against the Petitioner herein by one Dr. Kanchan Kumar Saxena, CEO of Bhopal Sahakari Dugdha Sangh, Maryadit, Bhopal Co-operative Society. It was alleged that the Petitioner had been working as a Tax Consultant with the Society. During period between 2013 and 2015, the Society issued various cheques amounting to Rs. 1.90 crores to the Petitioner herein in his professional capacity for depositing tax with the Statutory Authorities. It is alleged that instead of depositing the said tax amount with the concerned Statutory Authorities, the Petitioner herein forged the cheques and transferred Rs. 1.90 crores into his and his wife’s bank account.
The Disciplinary Directorate opined that the Petitioner is guilty of “other misconduct” falling within the meaning of Clause (2) of Part IV of the First Schedule and of Professional Misconduct falling within the meaning of Clause (4) of Part II of the Second Schedule to the Chartered Accountant Act.
Subsequently, a notice was sent to the Petitioner on 31.07.2018 by the Disciplinary Directorate informing him about the prima facie opinion formed by the Disciplinary Directorate and the same was also placed before the Disciplinary Committee. The Disciplinary Committee has concurred with the reasons given by the Disciplinary Directorate that the Petitioner is guilty of professional misconduct and has decided to proceed further under Chapter V of the Conduct Rules.
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