Disciplinary Committee of the Institute of Chartered Accountants of India (ICAI) has imposed a fine of ₹15,000 on CA. Jagdish Prasad Mittal for professional misconduct related to violating audit tender guidelines. The order, dated June 26, 2024, followed a complaint by Shri Mithun Mahakud. The committee found that Mr. Mittal’s firm, M/s. Jagdish Mittal & Co., had responded to a tender for the statutory audit of the District Rural Development Agency (DRDA) for the financial year 2017-18. This tender was exclusively for Chartered Accountant firms, but critically, it did not prescribe a minimum fee for the assignment. According to binding guidelines issued by the ICAI Council in 2016, members are prohibited from responding to tenders for services reserved exclusively for CAs, such as audits, unless a minimum fee is specified in the tender document. By participating in this tender and subsequently accepting the audit for a quoted fee of ₹21,240, Mr. Mittal was in clear contravention of this rule. The committee established this violation as professional misconduct under Item (1) of Part II of the Second Schedule to the Chartered Accountants Act, 1949. The fine must be paid within 90 days, failing which Mr. Mittal’s name will be removed from the Register of Members for 30 days.
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, 19491
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.
[PR170/20191D0/9112019/DC/1440/2021]
In the matter of: –
Shri Mithun Mahakud,
…..Complainant
-Vs-
CA. Jagdish Prasad Mittal,
Partner, M/s. Jagdish Mittal & Co.……Respondent
MEMBERS PRESENT: –
CA. Charanjot Singh Nanda, Presiding Officer
Shri Jugal Kishore Mohapatra, IAS (Recd.) (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. Jagdish Prasad Mittal (hereinafter referred to as the Respondent”) was held GUILTY, of professional misconduct falling within the meaning of Item (1), Part II of Second Schedule to the Chartered Accountants Act, 1949.
2. That pursuant to the said findings, an action under Section 216(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 2ndApril 2024.
3. The Committee noted that on the date of the hearing held on 2ndApril 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 made his written submission and accordingly he has no further submission.
5. The Committee considered the reasoning as contained in the findings holding the Respondent Guilty of professional misconduct vis-a-vis verbal 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, the Committee is of the view that professional misconduct on the part of the Respondent is established. Accordingly, the Committee ordered that a fine of Rs. 15,000/- (Rupees Fifteen Thousand only) be imposed upon the Respondent i.e. CA. Jagdish Prasad Mittal, 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
