ICAI Press Release – Satyam Verdict. – (09-04-2015)
As part of ICAI’s continuous drive to uphold the credibility, integrity and image of the accountancy profession in India, the regulatory mechanism of the Institute of Chartered Accountants of India (ICAI) is working assiduously. ICAI has been taking disciplinary action against its errant members as per the provisions of the Chartered Accountants (Amendment) Act, 2006 and Rules framed there under.
In the wake of Satyam scam, disciplinary action was initiated against S. Gopalakrishnan & S. Talluri, the concerned partners of the Statutory Audit firm, P. Siva Prasad & C. Ravindernath, Audit Incharge(s) from the said Audit firm, V. Srinivasu, then CFO of Satyam and V. S. Prabhakara Gupta, Head of Internal Audit Department of Satyam. After completion of enquiry against the aforesaid persons, the Disciplinary Committee having found them guilty of professional misconduct had awarded the maximum punishment of removal of their name(s) from the Register of Members permanently and also imposed a fine of Rs. 5 lakh each on them.
CA.Manoj Fadnis, President, ICAI said “ICAI initiated the proceedings in the Satyam case in Jan, 2009 immediately after the same was reported in the Media. ICAI initiated Disciplinary proceedings against the concerned members & the proceedings were completed in October, 2010 in all cases except one and reached finality in October, 2013 with the last case. The Appellate Authority constituted under Section 22A of the Chartered Accountants (Amendments) Act, 2006 in all cases, except one case which is yet to be decided by the said Authority also upheld the decision of ICAI.”
The details of proceedings initiated & conducted against each individual members involved are annexed.
While law took its own course, today a special court sentenced the founder of the erstwhile Satyam Computer Services Ltd. and nine others to seven years of rigorous imprisonment after convicting them in India’s biggest case of corporate fraud. The CBI had charged the 10 suspects with collaborating to inflate revenue, fabricate invoices, falsify accounts and income tax returns and fake fixed deposit receipts to paint a rosy picture of the company’s financials to deceive the public.
CA.Manoj Fadnis, President, ICAI added “ICAI respects the decision of Hon’ble special Court which further validates the decision taken by the Institute. ICAI is committed to ensure justice in all disciplinary cases and thereby upholding the values of Excellence, Independence and Integrity which form the benchmarks of the profession.”
Detail-Action taken on Satyam case by ICAI
Details of Proceedings Initiated & Conducted against each individual Member
| SL.
No. |
Name of the Chartered Accountants (Respondents) | Action taken by the Disciplinary Committee, Appellate Authority and status of the matter. |
| 1 | CA. S. Gop alakrishnan, Statutory Auditor (Signing partner for the period 1.4.2000 to 31.3.2007) |
1. The Committee vide its Report dated 23rd January, 2012 found the Respondent guilty of professional misconduct under Clauses (5), (6), (7) (8) and (9) of Part I of Second Schedule to the Chartered Accountants Act, 1949. The Committee fixed the hearing for award of punishment on 22nd April, 2012. The Committee vide its order dated 11th May, 2012, awarded the punishment for removal of the name from the Register of Members permanently and also imposed a fine of Rs. 5 lac on him. 2. The Appellate Authority upheld the decision of the 3. Thereafter, the Respondent approached the Hon”ble High Court against the order of the Disciplinary Committee. Since, there was no stay and the Institute has published the Notification for removed of his name permanently from the Register of Members. |
| 2. | CA. S. Talluri, Statutory Auditor
(Signing partner for the period 1.4.2007 to 30.9.2008 |
The Committee vide its Report dated 1st February, 2013 found the Respondent guilty of professional misconduct under Clauses (5), (6), (7) (8) and (9) of Part I of Second Schedule to the Chartered Accountants Act, 1949. The Committee vide its order dated 21st October, 2013 awarded the punishment for removal of the name from the Register of Members permanently and also imposed a fine of Rs. 5 lac on him. 2. The Respondent has filed an Appeal before the Appellate Authority against the order of the Disciplinary Committee and the same is yet to be decided by the Appellate Authority. |
| 3. | CA. Pulavarthi Siva Prasad
(Audit Incharge for the period 1.4.2001 – 31.3.2005) |
The Committee vide its Report dated 6th October, 2010 found the Respondent guilty of professional misconduct under Clause (1) of Part II of Second Schedule and Clause (7) of Part I of Second Schedule to the Chartered Accountants Act, 1949. The Committee vide its order dated 5th December, 2011, awarded the punishment for removal of the name from the Register of Members permanently and also imposed a fine of Rs. 5 lac on him. 2. The Appellate Authority vide its Order dated 5th September, 2012 upheld the orders passed by the Disciplinary Committee. 3. The Respondents have now filed Writ Petition against the Orders of Appellate Authority and the Disciplinary Committee before the Hon’ble High Court of Delhi. The Hon’ble Court on consideration of the matter, has granted stay to the Respondent on the undertaking from the Respondent that he would not practice as Chartered Accountants till the time final orders are passed by the High Court. |
| 4 | CA. Chintapatla Ravindernath
(Audit Incharge for the period 1.4.2005 – 30.9.2008) |
The Committee vide its Report dated 6th October, 2010 found the Respondent guilty of professional misconduct under Clause (1) of Part II of Second Schedule and Clause (7) of Part I of Second Schedule to the Chartered Accountants Act, 1949.
The Committee vide its order dated 5th December, 2011, awarded the punishment for removal of the name from the Register of Members permanently and also imposed a fine of Rs. 5 lac on him. 2. The Appellate Authority vide its Order dated 5th September, 2012 upheld the orders passed by the Disciplinary Committee. 3. The Respondents have now filed Writ Petition against the Orders of Appellate Authority and the Disciplinary Committee before the Hon’ble High Court of Delhi. The Hon’ble Court on consideration of the matter, has granted stay to the Respondent on the undertaking from the Respondent that he would not practice as Chartered Accountants till the time final orders are passed by the High Court. |
| 5 | Shri V. S. Prabhakara Gupta (then Head of Internal Audit Cell) | The Committee vide its Report dated 8th February, 2012 found the Respondent guilty of professional misconduct under Clauses (7) (8) and (9) of Part I and Clause (1) of Part II of Second Schedule and Other Misconduct falling within the meaning of Clause (2) of Part IV of First Schedule to the Chartered Accountants Act, 1949. The Committee vide its order dated 11th May, 2012, awarded the punishment for removal of the name from the Register of Members permanently and also imposed a fine of Rs. 5 lac on him. (It is to mention that the name of the Respondent stands removed on account of nonpayment of membership fees by the Respondent) 2. The Appellate Authority vide its order dated 23rd December, 2013 upheld the decision of the Disciplinary Committee. |
| 6 | V. Srinivasu
(then CFO of the Company) |
The Committee vide its Report dated 3rd January, 2012 found the Respondent guilty of professional misconduct under Clause (1) of Part II of Second Schedule and Clause (7) of Part I of Second Schedule and Other Misconduct falling within the meaning of Clause (2) of Part IV of First Schedule to the Chartered Accountants Act, 1949.
The Committee vide its order dated 23rd January, 2012, awarded the punishment for removal of the name from the Register of Members permanently and also imposed a fine of Rs. 5 lac on him. 2. The Appellate Authority vide its Order dated 5th September, 2012 upheld the decision of the Disciplinary Committee. 3. The name of the Respondent has been removed w.e.f. 08.05.2012. |
Source- ICAI
Wonderful!
These kinds of stringent actions should also be taken by CBDT against its corrupt officers. ICAI has set a nice example. Justice ensured.