Disciplinary Committee (Bench-I) of the Institute of Chartered Accountants of India (ICAI), under Section 21B(3) of the Chartered Accountants Act, 1949, issued an order against CA. Uttam Kumar Chauhan, following a complaint filed by Shri Vineet Rai, Deputy Registrar of Companies, West Bengal. The Committee, after due process and investigation under Rule 18(17) of the Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007, found CA. Chauhan guilty of professional misconduct as defined under Item (7) of Part I of the Second Schedule to the Act. The matter related to the omission of a cash flow statement in the AOC-4 filing, which the respondent argued was due to a technical and inadvertent mistake and should not be attributed to him, claiming it was another CA’s fault. However, after considering the facts, records, and the respondent’s verbal submissions made via video conferencing during the hearing held on 2nd April 2024, the Committee held the misconduct to be established. Consequently, the Committee imposed a fine of ₹25,000 to be paid within 90 days of receiving the order. Failure to comply would result in the removal of the respondent’s name from the Register of Members for a period of 15 days. The order was signed and dated 26th June 2024 by the Committee members CA. Charanjot Singh Nanda (Presiding Officer), Shri Jugal Kishore Mohapatra, IAS (Retd.) (Government Nominee), and Chandrashekhar Vasant Chitale (Member).
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
(Set up by an Act of Parliament)
‘DISCIPLINARY COMMITTEE (BENCH-I (2024-2025)1
“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.
[PR/G/6013/2022/DD/187/2022/DC/1624/2022]
In the matter of: –
Shri Vineet Rai,
Indian Corporate Law Services,
Deputy Registrar of Companies,
…. Complainant
-Vs-
CA. Uttam Kumar Chauhan,
Respondent
MEMBERS PRESENT: –
CA. Charanjot Singh Nanda, Presiding Officer
Shri Jugal Kishore Mohapatra, IAS (Retd.) (Government Nominee)
Chandrashekhar Vasant Chitale, 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. Uttam Kumar Chauhan, (hereinafter referred to as the Respondent”) was held GUILTY of professional misconduct falling within the meaning of Item (7) of Part I 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 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 the Company has submitted an application to the ROC for re-submission of the AOC-4 along with the Cash flow statement and have also mentioned that due to their technical and inadvertent mistake they have forget to attach the Cash flow statement in AOC Form which shows that the company had the Cash flow statement at the time of filing of the original AOC Form. Accordingly, he should not be held guilty for the mistake of another CA.
5. The Committee considered the reasoning as contained in the findings holding the Respondent Guilty of professional misconduct vis-à-vis verbal submissions of the Respondent.
6. Keeping in view the facts and circumstances of the case, material on record including verbal 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. 25,0001- (Rupees Twenty-Five Thousand only) be imposed upon the Respondent i.e. CA. Uttam Kumar Chauhan, 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 fifteen days.
Sd/-
(CA. CHARANJOT SINGH NANDA)
(PRESIDING OFFICER)
Sd/-
(SHRI JUGAL KISHORE MOHAPATARA),
I.A.S. (RETD.), (GOVERNMENT NOMINEE)
Sd/-
CHANDRASHEKHAR VASANT CHITALE
(MEMBER)
Place : 26.06.2024
Date : New Delhi
