The Institute of Chartered Accountants of India’s Disciplinary Committee (Bench-II) issued an order on May 17, 2024, concerning CA. Ashish Surendralal Mehta . The Committee found CA. Mehta guilty of professional misconduct under Item (7) and (8) of Part I of the Second Schedule to the Chartered Accountants Act, 1949. The case stemmed from a complaint by Shri Bharat Nagori. During the hearing on March 28, 2024, CA. Mehta provided a verbal representation, explaining that payments were made to one entity while the property agreement was with another, both belonging to the same organization, and this was noted in his certificate. However, the Committee determined that a certificate issued by CA. Mehta on September 1, 2017, contained contradictory information regarding the recipient entity for property payments. This indicated a failure to exercise due diligence and negligence in his professional duties, as well as a lack of sufficient information for his expressed opinion. Consequently, the Committee ordered that CA. Ashish S. Mehta be reprimanded and a fine of Rs. 35,000 be imposed, payable within 60 days.
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
(Set up by an Act of Parliament)
PR-52/2015-DD/106/2018/DC/1363/2020
[DISCIPLINARY COMMITTEE [BENCH-II (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-52/2018-DD/106/2018/DC/1363/2020]
In the matter of:
Shri Bharat Nagori….Complainant
Versus
CA. Ashish Surendralal Mehta
M/s Mehta Oswal & Associates…Respondent
Members Present:-
CA. Ranjeet Kumar Agarwal, Presiding Officer (in person)
Mrs. Rani S. Nair, IRS (Retd.), Government Nominee (through VC)
Shri Arun Kumar, IAS (Retd.), Government Nominee (through VC)
CA. Sanjay Kumar Agarwal, Member (in person)
CA. Cotha S Srinivas, Member (in person)
Date of Hearing 28th March, 2024
Date of Order : 17th May, 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 was, inter-alia, of the opinion that Ashish Surendralal Mehta (hereinafter referred to as the Respondent”) is GUILTY of Professional Misconduct falling within the meaning of Item (7) and (8) of Part I 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 a communication was addressed to him thereby granting opportunity of being heard in person / through video conferencing and to make representation before the Committee on 28th March 2024.
3. The Committee noted that on the date of the hearing held on 28th March 2024, the Respondent was present through video conferencing and made his verbal representation on the Findings of the Disciplinary Committee, inter-alia, stating that his client had made the payment to one party and the agreement for buying the property was made with the other party, although both the parties were of the same organization. The said fact was duly mentioned in the Certificate issued by him.
4. The Committee considered the reasoning as contained in the Findings holding the Respondent Guilty of Professional Misconduct vis-a-vis verbal representation of the Respondent.
5. Keeping in view the facts and circumstances of the case, material on record including verbal representation on the Findings, the Committee on perusal of the Certificate dated lst September 2017 issued by the Respondent observed that on one hand in the first para of the Certificate, the Respondent had stated that 5 persons made payment in totality of Rs. 92,05,000/- to M/s Eisha Properties (Unit 5), for purchase of Unit No.401,402,403,404 in Building D in the Complex known as Eisha Zenith at S.no.95, Hissa no. 2, Village Tathawade, Taluka Mulshi, Pune-411001 and on the other hand, the Respondent stated in the last pare of the Certificate that amount paid by all 5 persons reflected in their respective bank passbook against the name of M/s Eisha Properties. Both the statements are contradictory of each other as it is a matter of record that there existed two different entities, namely M/s Eisha properties and M/s Eisha Properties (Unit 5).
5.1 Thus, the Certificate dated 1st September 2017 contains contradictory information of recipient entity in favour of which payments were made by five persons for the purchase of Unit no.401„402,403,404 in Building D in the Complex known as Eisha Zenith, Pune. The Committee found that the Respondent not only failed to exercise due diligence while issuing such a Certificate but also was negligent while discharging his professional assignments. In addition to this, he failed to obtain sufficient information which was necessary for expressing his opinion while issuing such Certificate for which he failed to give any reasonable defence.
5.2 Hence, professional misconduct on the part of the Respondent is clearly established as spelt out in the Committee’s Findings dated 7th .February 2024 which is to be read in consonance with the instant Order being passed in the case.
6. Accordingly, the Committee was of the view that ends of justice will be met if punishment is given to him in commensurate with his professional misconduct.
7. Thus, the Committee ordered that CA. Ashish S. Mehta, be Reprimanded and also a Fine of Rs. 35,000/- (Rupees Thirty-Five Thousand only) be imposed upon him payable within a period of 60 days from the date of receipt of the Order.
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(CA. RANJEET KUMAR AGARWAL)
PRESIDING OFFICER
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(MRS. RANI S. NAIR, IRS REID.)
GOVERNMENT NOMINEE
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(SHRI ARUN KUMAR, IAS RETD.)
GOVERNMENT NOMINEE
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(CA. SANJAY KUMAR AGARWAL)
MEMBER –
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(CA. COTHA S SRINIVAS)
MEMBE
