Institute of Chartered Accountants of India (ICAI) has reprimanded Chartered Accountant Pankaj Dixit for professional and other misconduct under the Chartered Accountants Act, 1949. The Disciplinary Committee, in its order dated 16 May 2024, found Dixit guilty of multiple violations, including signing incorrect financial statements and submitting fabricated documents.
The complaint against Dixit, filed by Vijay Kumar Verma, alleged irregularities during his appointment as statutory auditor for the financial year 2017-18 and lapses in professional conduct. The ICAI Committee found that Dixit’s appointment as statutory auditor was not validly processed as per applicable procedures. It further held that he engaged in unethical practices by submitting false information to the Directorate and signing financial statements that were neither approved by nor signed on behalf of the Board of Directors.
During the hearing on 19 March 2024, Dixit appeared via video conferencing and requested the Committee to consider his submissions while determining the penalty. He explained that this was his first assignment, he lacked proper guidance, and sought leniency. The Committee noted his representation and also recorded that the complainant did not appear during hearings.
After reviewing the facts and circumstances of the case, the Committee concluded that the misconduct was established. However, considering the submissions of the respondent and the nature of the violations, it decided to reprimand Dixit under Section 21B(3)(a) of the Chartered Accountants Act, 1949. The reprimand serves as a formal warning regarding his professional obligations and ethical responsibilities.
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 218(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/209/2019-01)/199/2019-0C/1599/20221]
In the matter of:
Sh. Vijay Kumar Verma……Complainant
Versus
CA. Pankaj Dixit…..Respondent
MEMBERS PRESENT:
1. Ranjeet Kumar Agarwal, Presiding Officer (In person)
2. Shri Jiwesh Nandan, I.A.S (Retd.), Government Nominee (In person)
3. Dakshita Das, I.R.A.S. (Retd.), Government Nominee (Through VC)
4. Mangesh P Kinare, Member (Through VC)
5. Abhay Chhajed, Member (Inperson)
DATE OF HEARING : 19th MARCH, 2024
DATE OF ORDER : 16th 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 Misconduct and Conduct of Cases) Rules, 2007, the Disciplinary Committee was inter-alia of the opinion that CA. Pankaj Dixit (hereinafter referred to as the Respondent”) is GUILTY of Professional and Other Misconduct falling within the meaning of Item (9) of Part I and Item (2) of Part IV of the First Schedule and Item (7) of Part I and Item (3) of Part II of the 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 an opportunity of being heard in person/ through video conferencing and to make representation before the Committee on 19th March 2024.
3. The Committee noted that on the date of hearing on 19′ March 2024, the Respondent was present through video conferencing. The Respondent stated that the submissions made by him during hearing stage be given due consideration when deciding the punishment. He further stated that it was his first assignment and there was nobody to guide him and requested the Committee to take a lenient view in the matter. The Committee also noted that the Complainant never appeared before it during the hearing(s).
4. The Committee considered the reasoning as contained in Findings holding the Respondent ‘Guilty’ of Professional and Other Misconduct vis-à-vis verbal 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 noted that the Respondent’s appointment as the Statutory Auditor of the Company for the Financial Year 2017-18 was not valid in accordance with the relevant procedure supposed to be followed. Further, the Respondent had also engaged himself in unethical practices, by submitting fabricated documents and false information to the Directorate, thereby violating professional standards and ethical obligations. The Committee held that the Respondent had signed incorrect financial statements of the Company for the Financial Year 2017-18 which were also not validly approved and signed by or on behalf of its Board of Directors. Hence, the Professional and Other 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.
6. 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.
7. Thus, the Committee ordered that the Respondent i.e., CA. Pankaj Dixit, New Delhi, be REPRIMANDED, under Section 2111(3)(a) of the Chartered Accountants Act,1949.
Sd/-
(CA. RANJEET KUMAR AGARWAL)
PRESIDING OFFICER
Sd/-
(SHRI JIWESH 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
