The Disciplinary Committee of the Institute of Chartered Accountants of India (ICAI) has issued an order against CA. Anand Kumar Jhunjhunwala following a finding of professional misconduct. The complaint was initiated by Shri Subhendu Bhattacharyya, DGM, Reserve Bank of India. After a hearing on April 2, 2024, where CA. Jhunjhunwala presented his case and requested leniency due to personal circumstances.
Based on the detailed proceedings, inspection reports, and the findings of the Disciplinary Committee, it is evident that CA. Anand Kumar Jhunjhunwala has been held guilty of professional misconduct in multiple instances. The misconduct primarily pertains to the incorrect classification of asset accounts, failure to provide necessary documentation such as repayment schedules, and misreporting the status of various loan accounts, including instances of evergreening and non-compliance with regulatory guidelines.
The Committee has distinctly noted the respondent’s failure to substantiate the reported account statuses with corroborative evidence, which led to the conclusion that the classifications made were not consistent with the actual recovery records and regulatory norms. The respondent’s oral submissions, including pleas for leniency based on potential professional and personal difficulties, have been noted but do not mitigate the established misconduct.
Consequently, the Committee has ordered the removal of the respondent’s name from the Register of Members for a period of three years and imposed a fine of Rs. 5,00,000, to be paid within a stipulated timeframe. Failure to comply with the penalty will result in further disciplinary action, including additional period of removal from the register , .
In conclusion, the disciplinary proceedings confirm that CA. Anand Kumar Jhunjhunwala engaged in professional misconduct, warranting appropriate sanctions to uphold the integrity and accountability expected within the profession of Chartered Accountants.
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
(Setup by an Act of Parliament)
“DISCIPLINARY COMMITTEE (BENCH-1 (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/29/2018/DD/78/2018/DC/1532/2022]
In the matter of: –
Shri Subhendu Bhattacharyya
DGM, Reserve Bank of India,
…..Complainant
-Vs–
CA. Anand Kumar Jhunjhunwala,
….. Respondent
MEMBERS PRESENT: –
CA. Charanjot Singh Nanda, Presiding Officer
Shri Jugal Kishore Mohapatra, IAS (Retd.) (Government Nominee)
CA. 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. Anand Kumar Jhunjhunwala, (hereinafter referred to as the Respondent”) was held GUILTY of professional misconduct falling within the meaning of Item (5) & (7) of Part I of 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 communication was addressed to him thereby granting opportunity of being heard in person I 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 2ndApril 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 at this stage of his career he is left with a job and if anything impinges on that he will be in a grave difficulty because supporting his family and parents would become that much more challenging and begged for some leniency on that count.
5. The Committee considered the reasoning as contained in the findings holding the Respondent Guilty of professional misconduct vis-a-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 the name of the Respondent i.e., CA. Anand Kumar Jhunjhunwala No. 056613) be removed from the Register of Members for a period of three years and a fine of Rs. 5,00,000/- (Rupees Five Lakhs only) be imposed upon the Respondent 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 an additional period of one month.
Sd/-
(CA. CHARANJOT SINGH NANDA)
(PRESIDING OFFICER)
Sd/-
(SHRI JUGAL KISHORE MOHAPATARA),
I.A.S. (RETD.), (GOVERNMENT NOMINEE)
Sd/-
CA. CHANDRASHEKHAR VASANT CHITALE
(MEMBER)
Place : 26.06.2024
Date : New Delhi
