Appearance in CA Exam without Disclosing On-going Criminal Proceedings: ICAI Removes Chartered Accountant from Roll

The Institute of Chartered Accountants of India (ICAI) has removed a Chartered Accountant, from the roll of Chartered Accountants for non-disclosure of ongoing criminal proceedings against him and resultant conviction.

“The Petitioner’s conviction would be attracted by the disability of ‘moral turpitude’ as contemplated under Section 8(v) of the Act. The ICAI shall award reasonable time for the Petitioner to file a fresh reply to the impugned notices, and for him to be heard by the ICAI in accordance with the principles of natural justice. Upon the said hearing being concluded, ICAI shall proceed in accordance with law”, the High Court of Delhi had held in the petition filed by the CA.

The notification by the ICAI stated the following –

“In exercise of the powers conferred by sub-section(1)(d) of Section 20 of the Chartered Accountants Act, 1949 and in terms of provisions of Regulation 18 of the Chartered Accountants Regulations, 1988, it is hereby notified that the CA has incurred disability within the meaning of Clause (v) of Section 8 of the Chartered Accountants Act, 1949 read with Section 20(1)(d) for having been convicted by the Hon’ble High Court of Delhi for the offenses under Section 354 and 506 (II) of Indian Penal Code, 1860 in Cr. LA 828/2009. Thereafter, the Council of the Institute, after affording an opportunity of hearing to the CA, per the directions issued by the Hon’ble High Court of Delhi in W.P. No. 6819/2020 dated 21.01.2022 has ordered that the name of the CA be removed from the Register of Members under Section 20(1)(d) of the Chartered Accountants Act, 1949 for incurring the disability as specified in Section 8(v) of the said Act.”

It was further stated that it is hereby notified that the name of the said Chartered Accountant shall stand removed from the Register of Members and that he shall not be entitled to practice as `Chartered Accountant’ with effect from the date of publication of this notification.”

The Delhi High Court had, inter alia, directed the Institute of Chartered Accountants of India (ICAI) to create a framework where there is proper disclosure by candidates who apply to become a CA at inception in the aforementioned judgment.

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