Disciplinary Committee (Bench-I) of the Institute of Chartered Accountants of India (ICAI), in its order dated June 26, 2024, found CA Parimal Sarkar guilty of professional misconduct under Item (8) of Part I of the First Schedule and Item (1) of Part II of the Second Schedule to the Chartered Accountants Act, 1949. The matter originated from a complaint regarding Sarkar’s acceptance of an audit assignment without communication with the previous auditor, and his participation in a government tender that violated ICAI’s tender guidelines dated April 7, 2016, which disallow participation in tenders lacking a prescribed minimum fee. During the hearing held on April 2, 2024, Sarkar appeared via video conferencing and submitted both written and verbal explanations. He admitted to the lapses, citing lack of awareness and systemic issues, and requested leniency from the Committee. The Committee noted his admission and considered all material and submissions before concluding that professional misconduct had been established. Consequently, it imposed a fine of ₹15,000 to be paid within 90 days. Failure to pay would result in a 30-day removal of his name from the Register of Members. The order was signed by the Presiding Officer CA Charanjot Singh Nanda, Government Nominee Shri Jugal Kishore Mohapatra (IAS Retd.), and Members CA Chandrashekhar Vasant Chitale and CA Gyan Chandra Misra. The hearing and order were conducted under the relevant provisions of the Chartered Accountants Act and associated Rules.
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
(Set up by an Act of Parliament)
[DISCIPLINARY COMMITTEE [BENCH-I (2024-2025)]
[Constituted under Section 21B of the Chartered Accountants Act, 1949]
ORDER UNDER SECTION 21B(3) OF THE CHARTERED ACCOUNTANTS ACT, 1949 READ WITH RULE 19(1) OF THE CHARTERED ACCOUNTANTS (PROCEDURE OF INVESTIGATIONS OF PROFESSIONAL AND OTHER MISCONDUCT AND CONDUCT OF CASES) RULES, 2007.
[PR/02/2021/DD/47/2021/DC/1665/2022]
In the matter of: –
CA. Tapan Kumar Mukhopadhyay,
……Complainant
-Vs-
CA. Parimal Sarkar,
…..Respondent
MEMBERS PRESENT: –
CA. Charanjot Singh Nanda, Presiding Officer
Shri Jugal Kishore Mohapatra, lAS (Retd.) (Government Nominee)
CA. Chandrashekhar Vasant Chitale, Member
CA. Gyan Chandra Misra, Member
Date of Hearing : 2nd April 2024
Date of Order : 26.06.2024
1. That vide findings under Rule 18(17) of the Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007, the Disciplinary Committee noted that CA. Parimal Sarkar (hereinafter referred to as the Respondent”) was held GUILTY of professional ,misconduct Falling within the meaning of Item (8) of Part I of First Schedule and Item (1) Part of Second Schedule to the Chartered Accountants Act, 1949.
2. That pursuant to the said findings, an action under Section 21B(3) of the Chartered Accountants (Amendment) Act, 2006 was contemplated against the Respondent and communication was addressed to him thereby granting opportunity of being heard in person / through video conferencing and to make written & verbal representation before the Committee on 2nd April 2024.
3. The Committee noted that on the date of the hearing held on 2nd April 2024, the Respondent was present through video conferencing, and he made his verbal submission on the findings of the Disciplinary Committee.
4. In his verbal submission the Respondent inter alia stated that he has already given his written submission on the findings of the Committee. Regarding participation in the government tender, he stated that many members do not have an understanding about where they should not participate and since now there is tender secretariat in place, this sort of unintentional lapse will not happen again. He also requested bench to be lenient on him.
5. The Committee considered the reasoning as contained in the findings holding the Respondent Guilty of professional misconduct vis-à-vis verbal/ written submissions of the Respondent.
6. Keeping in view the facts and circumstances of the case, material on record including verbal & written submissions of the Respondent on the findings of the Committee, the Committee is of the view that the professional misconduct on the part of the Respondent is established. Accordingly, the Committee ordered that a fine of Rs. 15,0001- (Rupees Fifteen Thousand only) be imposed upon the Respondent i.e. CA. Parietal Sarkar to be paid within 90 days of receipt of the Order. If the Respondent fails to pay the fine within the stipulated period, his name be removed from the Register of Member for a period of thirty days.
Sd/-
(CA. CHARANJOT SINGH NANDA)
(PRESIDING OFFICER)
Sd/-
(SHRI JUGAL KISHORE
MOHAPATARA), I.A.S. (RETD.),
(GOVERNMENT NOMINEE)
Sd/-
(CA. CHANDRASHEKHAR VASANT
CHITALE)
(MEMBER)
Sd/-
(CA. GYAN CHANDRA MISRA)
(MEMBER)
DATE:26.06.2024
PLACE: New Delhi
