The Disciplinary Committee of the Institute of Chartered Accountants of India (ICAI) has reprimanded CA. Sanjay Kochhar for professional misconduct. The case stemmed from a complaint filed by the Deputy Registrar of Companies regarding Kochhar’s certification of Form 32. In this form, Kochhar declared that the company’s directors were not disqualified, but he failed to provide a basis for this declaration. He did not provide a copy of a declaration from the directors as requested by the Director (Discipline) under the relevant rules. The committee’s findings noted that Kochhar had certified the form without having any documentary evidence to support his declaration. The committee also observed that Kochhar repeatedly failed to appear at multiple hearings and did not file any written submissions, leading the case to be decided ex-parte. Considering the established professional misconduct, the committee concluded that a reprimand under Section 21B(3)(a) of the Chartered Accountants Act, 1949, was the appropriate punishment.
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
(Set up by an Act of Parliament)
[DISCIPLINARY COMMITTEE [BENCH-IV (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.
File No: [PR/G/295/2022/DD/345/2022/DC/1708/2023]
In the matter of:
Ms. Kamna Sharma
Deputy Registrar of Companies
Versus
CA. Sanjay Kochhar
MEMBERS PRESENT:
1. CA. Ranjeet Kumar Agarwal, Presiding Officer (In person)
2. Shri Jiwesh Nandan, I.A.S (Retd.), Government Nominee (In person)
3. Ms. Dakshita Das, I.R.A.S. (Retd.), Government Nominee (Through VC)
4. CA. Mangesh P Kinare, Member (Through VC)
5. CA. Abhay Chhajed, Member (In person)
DATE OF HEARING : 20th January 2025
DATE OF ORDER : 04th February 2025
1. That vide Findings dated 16.10.2024 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 was inter-alia of the opinion that CA. Sanjay Kochhar (hereinafter referred to as the Respondent”) is GUILTY of Professional Misconduct falling within the meaning of Item (7) of Part (I) of the 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(s) were addressed to him thereby granting opportunities of being heard in person/ through video conferencing and to make representation before the Committee on 11.12.2024, 06.01.2025 and 20.01.2025.
3. The Committee noted that this case was fixed before it for award of punishment under Rule 19(1) of the Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007. The Committee also noted that the Respondent neither had filed any written representation on the findings of the Committee in captioned case nor he had appeared before it despite the fact that he was specifically informed through notice for hearing dated 20/01/2025 that in case of his non-appearance, the matter would be decided ex-parte. Moreover, the Committee observed that this case was fixed five times before it for hearing(s) under Rule 18 of the Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007, however, the Respondent neither appeared before it, nor he filed any written submissions, and the Committee had decided the matter ex-parte at Rule 18 of aforesaid Rules.
4. In view of above facts, the Committee decided that there was no need of granting any more opportunity to the Respondent. Therefore, the Committee proceed with the conduct of the hearing ex-parte, in the absence of the Respondent, on the basis of documents/ material available on record.
5. The Committee considered the reasoning as contained in the Findings holding the Respondent ‘Guilty’ of Professional Misconduct. Keeping in view the facts and circumstances of the case and material on record, the Committee noted that the Respondent has certified Form 32 wherein it is given/declared that the Directors of the Company are not disqualified to become the Directors of the Company, however, he had failed to substantiate the basis of the said declaration of non-qualification of the Directors. The Respondent also failed to provide the copy of such declaration, which was specifically called for by the Director (Discipline) under Rule 8(5) of aforesaid Rules. Moreover, he had not filed written statement in order to defend the allegations at Prima Facie Stage also. Thus, it is evident that there was no such declaration given by the Directors to the Company and the Respondent has certified the said Form 32 without having seen such declaration and without having any documentary evidence with him.
6. Hence, the Professional Misconduct on the part of the Respondent is clearly established as spelt out in the Committee’s Findings dated 16thOctober 2024 which is to be read in consonance with the instant Order being passed in the case.
7. Accordingly, the Committee was of the view that the ends of justice would be met if punishment is given to him in commensurate with his Professional Misconduct.
8. Thus, the Committee ordered that the Respondent i.e., CA. Sanjay Kochhar
, New Delhi be REPRIMANDED, under Section 21B(3)(a) of the Chartered Accountants Act, 1949.
Sd/-
(CA. RANJEET KUMAR AGARWAL)
PRESIDING OFFICER
Sd/-
(SHRI JIWESH NANDAN, I.A.S. {RETD.})
GOVERNMENT NOMINEE
Sd/-
(MS. DAKSHITA DAS, I.R.A.S.{RETD.})
GOVERNMENT NOMINEE
