The Institute of Chartered Accountants of India (ICAI) Disciplinary Committee reprimanded CA. Manish Agarwal for “Other Misconduct.” The complaint, filed by Shri Parveen Kumar Purohit, alleged that CA. Agarwal submitted a complaint to a constitutional authority on behalf of investors without verifying the information’s accuracy or source. Despite being given multiple opportunities to appear, CA. Agarwal failed to attend the hearings on March 28, 2024, and April 23, 2024, citing personal emergencies. The Committee proceeded ex-parte, noting his absence and lack of written representation. The Committee found CA. Agarwal’s conduct of filing a complaint based on unverified information demonstrated a casual approach not expected from a Chartered Accountant. Consequently, the Committee ordered that CA. Manish Agarwal be reprimanded under Section 21B(3)(a) of the Chartered Accountants Act, 1949, effective from the order date of May 30, 2024.
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
(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 21E1(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/58/2018-DD/158/2018-DC/1358/2020]
In the matter of:
Shri Parveen Kumar Purohit, Secretary, Gopal Goverdhan Goshala … Complainant
Versus
CA Manish Agarwal, Partner, M/s PMS & Co., Chartered Accountants … Respondent.
MEMBERS PRESENT:
1. CA. Ranjeet Kumar Agarwal, Presiding Officer (In person)
2. Ms. Dakshita Das, I.R.A.S. (Retd.), Government Nominee (In person)
3. CA. Mangesh P Kinare, Member (In person)
4. CA. Abhay Chhajed, Member (In person)
DATE OF HEARING: 23rd April 2024
DATE OF ORDER.: 30th May 2024
1. That vide Findings dated 05.02.2024 under Rule 18(17) of the. Chartered Accountants (Procedure of Investigations of Professional and Other Mis&onduct and Conduct of Cases) Rules, 2007, the Disciplinary Committee was inter-alia of .the opinion that Manish Agarwal (hereinafter referred to as the Respondent”) is GUILTY of Other Misconduct falling within the meaning of Clause (2) of Part IV of the 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 28th March 2024. The Committee noted that the Respondent, vide email(s) dated 26th March 2024 and 28th March 2024, had sought adjournment on account of personal emergency. The Committee, acceding to his request for a grant of adjournment, provided a final opportunity to the Respondent to appear before the Committee on 23rd April 2024. The Committee directed the office to inform the Respondent to appear before it at the time of the next listing and in case of his failure to appear, the matter be decided ex-parte the Respondent based upon the documents and materials available on record.
3. The Committee noted that on the date of hearing on 23rdApril 2024, the Respondent was not present. The Respondent had vide email dated 23.04.2024 requested for further adjournment due to death of his maternal grandmother. The Committee further noted that the said case was fixed for the second time for award of punishment and prior to this; it was adjourned at the request of the Respondent at previous hearing held on 28th March 2024. The Committee further noted that the Respondent was specifically directed to appear before at the time of the next listing and in case of his failure to appear, the matter be decided ex-parte the Respondent based upon the documents and materials available on record. Despite such direction, the Respondent did not appear before the Committee on 23rd April, 2024. In view of these facts, the Committee decided to proceed ex-parte, the Respondent. The Committee also noted that the Respondent had not submitted his written representation on the Findings of the Committee.
4. The Committee considered the reasoning as contained in Findings holding the Respondent ‘Guilty’ of Other Misconduct.
5. The Committee observed that there was a substantial time gap between the filing of the complaint by the Respondent on behalf of certain investors and the subsequent audit of the Trust’s financial statements for the relevant period i.e., Financial Year 2016-17, which was conducted by another Chartered Accountant, who had issued his report on 3e October 2017. The Committee opined that it was not clear that as to how the Respondent raised the allegations regarding April, 2016 in the complaint letter dated 4th May, 2017 when the facts and details as contained in the financial statements for that period would not be known prior to the date of audit.
6. The Committee held that such conduct of the Respondent of filing a complaint before the constitutional authority without even knowing the information or source of information or its authenticity and by relying merely on the information provided by certain persons shows his casual approach being a professional Chartered Accountant. The Committee was of the view that Respondent should have ensured the accuracy and reliability of the information, he presented or acted upon. The Committee held that such casual approach is not expected from a Professional Chartered Accountant and was highly unbecoming of a Chartered Accountant. Hence, the Misconduct on the part of the Respondent is clearly established as spelt out in the Committee’s Findings dated 05th February 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 Misconduct.
8. Thus, the Committee ordered that the Respondent i.e., CA. Manish Agarwal, be REPRIMANDED, under Section 218(3)(a) of the Chartered Accountants Act,1949.
Sd/-
(CA. RANJEET KUMAR AGARWAL)
PRESIDING OFFICER
Sd/-
(MS. DAKSHITA DAS, I.R.A.S.{RETD.})
GOVERNMENT NOMINEE
Sd/-
(CA. MANGESH P KINARE)
MEMBER
Sd/-
(CA. ABHAY CHHAJED)
MEMBER
