The Disciplinary Committee of the Institute of Chartered Accountants of India (ICAI) has reprimanded CA. Vivek Kumar for professional and other misconduct. The case was brought forward by the Registrar of Companies (ROC), Kanpur, Smt. Seema Rath. The committee’s findings, dated October 10, 2024, concluded that CA. Kumar was guilty of misconduct. During a hearing on January 20, 2025, CA. Kumar admitted his mistake, stating there were errors in the Memorandum of Association and Articles of Association attached to a Spice form INC-32 that he had certified. The committee found that he gave a false declaration by not accurately verifying the form’s attachments. Specifically, the forms had inconsistent clauses and violated Rule 13(4) of the Companies (Incorporation) Rules, 2014, by having the same individual act as an authorized signatory for a company and a second subscriber in his individual capacity. As a result, the committee ordered that CA. Vivek Kumar be reprimanded under Section 21B(3)(a) of the Chartered Accountants Act, 1949.
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NDIA
(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 2113(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/46/2022-DD/354/2022/DC/1711/20231
In the matter of:
Smt. Seema Rath,
Versus
CA. Vivek Kumar
MEMBERS PRESENT:
1. CA. Ranjeet Kumar Agarwal, Presiding Officer (In person)
2. Shri Jiwesh Nandan, LA.S (Retd.), Government–Nominee (In person)
3. Ms. Dakshita bas, 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 : 08th February 2025
1. That vide Findings dated 10.10.2024 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. Vivek Kumar (hereinafter referred to as the Respondent”) is GUILTY of Professional and Other Misconduct falling within the meaning of–Item (7) of Part-I of Second Schedule and Item (2) of Part-IV of First 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 an opportunity of being heard in person/ through video conferencing and to make representation before the Committee on 20thJanuary 2025.
3. The Committee noted that on the date of the hearing on 20thJanuary 2025, the Respondent was physically present for the hearing and appeared before it. Thereafter, the Committee asked the Respondent to make submissions in the matter. During the hearing, the Respondent made his oral submissions, wherein he admitted his mistake and submitted that he had no wrong intention. He also submitted that there were mistakes in Memorandum of Association and Articles of Association attached with Spice form INC-32 certified by him. He further stated that if the Central Registration Centre (CRC) of MCA had checked the same, these mistakes might not have occurred. He further submitted that it was his first mistake in 11 years of his professional career and requested the Committee to forgive him for this mistake and he assured the Committee that such mistakes will not be repeated in future.
4. The Committee considered the reasoning as contained in Findings holding the Respondent ‘Guilty’ of Professional and Other Misconduct vis-a-vis verbal and written representation of the Respondent.
5. Thus, keeping in view the facts and circumstances of the case, material on record including verbal representation of the Respondent on the Findings, the Committee observed that the Respondent had given false declaration as he had not verified the attachments of the Forms accurately and certified the Spice form INC-32 of M/s. Deer Smart India Private Limited which contained, the agreement containing inconsistent clauses as the attachment to the Form. The Committee further observed that the Respondent while verifying the Memorandum of Association and ‘Articles of Association, was required to verify the requirements of Sections 4 and 5 of the Companies Act, 2013 read with Rule 13(4) of Companies (Incorporation) Rules, However, the Respondent failed to verify the fact that Mr. Zhang Wenhua was authorized subscriber/ signatory to MOA and AOA on the behalf of M/s. Deer Smart HK. Co. Limited (which was the first non-individual subscriber) and Mr. Zhang Wenhua was also a second subscriber in his individual capacity which was in contravention of Rule 13(4) of Companies (Incorporation) Rules, 2014.
6. Hence, the Professional and Other Misconduct on the part of the Respondent is clearly established as spelt out in the Committee’s Findings dated 10th October 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 and Other Misconduct.
8. Thus, the Committee ordered that the Respondent i.e. CA. Vivek Kumar be REPRIMANDED under Section 21B(3)(a) of the Chartered Accountants Act, 1949.
Sd/-
(CA. RANJEET KUMAR AGARWAL)
PRESIDING OFFICER
Sd/-
(SHRI MESH NANDAN, I.A.S. {RETD.})
GOVERNMENT NOMINEE
Sd/-
(MS. DAKSHITA DAS, I.R.A.S.{RETD.})
GOVERNMENT NOMINEE
Sd/-
(CA. MANGESH P KINARE)
MEMBER
Sd/-
(CA. ABHAY CHHAJED)
MEMBER
