HC directs ICAI to seek disclosures about pending criminal cases from newly qualified CAs

Case Details: Mohit Bansal v. Institute of Chartered Accounts of India - [2022] 134 taxmann.com 258 (Delhi)

Judiciary and Counsel Details

• • Pratibha M. Singh, J.
  • Ramji Srinivasan, Sr. Adv. Ms. Pooja Saigal, Simrat S. Pasay, Chaitanya Pandey, Farman Ali and Athar Raza Farooquei, Advs. for the Respondent.

Facts of the Case

In the instant case, despite a criminal case being pending at the time of enrolment as a Chartered Account, the Petitioner was enrolled and was permitted to practice as a CA.

The Delhi High Court has said that there is also a need for a continuing disclosure, which may be annual for members to inform the ICAI if there are any criminal cases/convictions, etc., against members. The ICAI shall not be kept in the dark.

High Court Held

The court has directed the Institute of Chartered Accounts of India (ICAI) to create a framework wherein there is proper disclosure by candidates who apply to become Chartered Accountants.

ICAI shall frame a policy and a mechanism, if not already in existence, for disclosure by members both at the inception and periodically to inform about any criminal cases or convictions so that the spirit and intent of the statute are given effect. The ICAI is not in the dark until some information or complaint notifies it.