ICAI bans Delhi based CA for 1 year for misconduct of connivance in anti-dated stock invests & irregular share allotment which was upheld by the Delhi High Court
The ICAI has notified the removal of the CA found guilty of other misconduct from the Register of Members for a period of one years for violation falling under under Section 22 read with Section 21 of the Chartered Accountants Act, 1949.
It has been further clarified that during the aforesaid period he shall not practise as a Chartered Accountant in terms of the said order of the Hon’ble High Court of Delhi.
Earlier Hon’ble High Court of Delhi [ABCAUS 2129 (2017) (11) HC] has upheld the decision of the ICAI holding the CA guilty of professional misconduct.
Earlier, the ICAI had received a complaint from the Securities and Exchange Board of India (‘SEBI’) alleging that the said CA and chairman of the issuer company connived with each other in arranging finance/security for purposes of obtaining ante-dated stock invests in the name of the subscribers which were used at higher amount for subscribing to the public issue after the close of its Issue and thus facilitated irregular allotments to the detriment of the general investing public.
The ICAI Council agreed with and accepted the findings of the Disciplinary Committee (DC) holding the CA guilty.
The Hon’ble Delhi High Court accepted the reference made and directed that the CA shall be suspended from the membership of the ICAI for a period of one year during which he would be restrained from rendering any services as a CA as recognized by the Chartered Accountants Act, 1949. Also, the High Court had imposed costs of Rs.10,000/- to be paid by the CA to the ICAI.
Read the ICAI Notification for removal Click Here >>