The Disciplinary Committee of the Institute of Chartered Accountants of India (ICAI) has reprimanded CA. Kashish Khunger for professional misconduct. The order stems from a complaint by the Registrar of Companies (NCT of Delhi & Haryana) regarding the certification of a SPICe+ Form INC-32. The Committee found that CA. Khunger failed to attach a required rent/lease agreement with the form, which is a violation of Rule 25 of the Companies (Incorporation) Rules 2014. During a hearing on January 6, 2025, the CA provided a written representation and was heard via video conferencing. He argued that he had visited the office premises and that a rent agreement was not a mandatory attachment, but rather a matter of professional judgment. However, the Committee upheld its previous finding from December 4, 2024, concluding that the professional misconduct was clearly established. The Committee’s order, dated January 20, 2025, reprimands the CA under Section 21B(3)(a) of the Chartered Accountants Act, 1949, determining that this punishment is proportionate to the misconduct.
THE INSTITUTE OF CHARTERED ACCOUNTANT 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 21B(3) OF THE CHARTERED ACCOUNTANTS ACT, 1949 READ WITH RULE 19(11 OF THE CHARTERED ACCOUNTANTS (PROCEDURE OF INVESTIGATIONS OF PROFESSIONAL AND OTHER MISCONDUCT AND CONDUCT OF CASES) RULES, 2007.
File No.- [PR/G/292/2022/DD/204/2022/DC/1709/2023]
n the matter of:
Registrar of Companies
Through Shri Nitin Phartyal,
Versus
CA. Kashish Khunger
MEMBERS PRESENT:
1. Shri Jiwesh Nandan, I.A.S (Retd.), Presiding Officer and Government Nominee (In person)
2. Dakshita Das, I.R.A.S. (Retd.), Government Nominee (Through VC)
3. Mangesh P Kinare, Member (In person)
4. Abhay Chhajed, Member (In person)
DATE OF HEARING : 06th January 2025
DATE OF ORDER : 20th January 2025
1. That vide Findings dated 04.12.2024 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. Kashish Khunger (hereinafter referred to as the “Respondent”) is GUILTY of Professional Misconduct falling within the meaning of Item (7) of Part-I of Second Schedule to the Chartered Accountants Act, 1949.
2. Thai 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 06th January 2025.
3. The Committee noted that on the date of the hearing on 06th January 2025, the Respondent was present through video conferencing. During the hearing, the Respondent stated that he had already submitted his written representation dated 30th December 2024 on the Findings of the Committee. He submitted that he had attached No Objection Certificate from owner of the premise and utility bill with Spice+ Form INC -32 as per requirements of Rules 25 of the Companies (Incorporation) Rules 2014. The Committee also noted the written representation of the Respondent dated 30th December 2024 on the Findings of the Committee, which, inter alia, are given as under: –
a) On the day of his visit on 21st September 2020, he met the subscriber cum directors who were present at the office. The Respondent had received documents on e-mail, but the visit of the Respondent to the registered office of the Company was in no way connected with receiving of documents by email.
b) The intent and the requirements of Rule 25(2) is that any one of the three documents mentioned in (a), (b) and (c) in Rule 25(2) along with the document mentioned in item (d) shall be attached with the Form INC 32, i.e., the incorporation documents to be submitted as per Rule 25(2) of the Companies (Incorporation) Rules 2014.
c) There was no mandatory requirement to submit the rent agreement in this case. The landlord had confirmed that there was rent agreement. It was just a case of a professional judgment of the Respondent not to attach the rent agreement.
4. The Committee, while considering the written submissions dated 30thDecember 2024, also noted that it has already dealt with the submissions of the Respondent as mentioned in written submissions dated 23.05.2024 placing reliance on judgments of Court which is covered in the Findings dated 04th December 2024. Further, in response to the specific question posed to the Respondent as to if he is aware of any judgment of Court on the interpretation of Rule 25 of the Companies (Incorporation) Rules 2014, the Respondent replied that there is no judgment in his possession on Rule 25.
5. The Committee considered the reasoning as contained in the Findings holding the Respondent ‘Guilty’ of Professional Misconduct vis-a-vis written and verbal representation of the Respondent. The Committee noted that the issues/ submissions made by the Respondent as aforestated have been dealt with by it at the time of hearing under Rule 18.
6. Thus, keeping in view the facts and circumstances of the case, material on record including written and verbal representation of the Respondent on the Findings, The Committee viewed that the Respondent had certified SPICe+ Form INC-32 and required document(s); viz. rent/lease agreement was not attached along with the said Form at the time of certification of Form INC-32, which itself was a violation of Rule 25 of the Companies (Incorporation) Rules 2014. Hence, the Professional Misconduct on the part of the Respondent is clearly established as spelt out in the Committee’s Findings dated 04thDecember 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 Misconduct.
8. Thus, the Committee ordered that the Respondent i.e., CA. Kashish Khunger, be REPRIMANDED under Section 21B(3)(a) of the Chartered Accountants Act 1949..
Sd/-
(SHRI JIWESH NANDAN, I.A.S.{RETD.})
PRESIDING OFFICER AND GOVERNMENT NOMINEE
Sd/-
(MS. DAKSHITA DAS, LR.A.S.{RETD.})
GOVERNMENT NOMINEE
Sd/-
(CA. MANGESH P KINARE)
MEMBER
Sd/-
(CA. ABHAY CHHAJED)
MEMBER
