CA found guilty of Professional misconduct for taking bribe and conspiring with MCA Officer

The Institute of Chartered Accountants of India(ICAI) in the matter of CA. Gopal Krishan, found the Chartered Accountant guilty of Professional misconduct for taking bribe and conspiring with MCA Officer.

The Board of Discipline vide Report dated 1st February, 2022 held that CA. Gopal Krishan (M. No. 526831) is Guilty of “Other Misconduct” falling within the meaning of Item (2) of Part IV of First Schedule to the Chartered Accountants Act, 1949 read with Section 22 of the said Act.

An action under Section 21A (3) of the Chartered Accountants Act, 1949 was contemplated against CA. Gopal Krishan and communication dated 4th February, 2022 was addressed to him thereby granting him an opportunity of being heard in person and/or to make written representation before the Board on 9th February, 2022.

CA. Gopal Krishan appeared before the Board on 9th February, 2022 through video conferencing and made his oral representation thereat.

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The Board has carefully gone through the facts of the case and also the oral representation of CA. Gopal Krishan.

As per the Findings of the Board as contained in its report, the Board noted that a letter was received from Supt. of Police, CBI/ ACB/ New Delhi (“Informant”) containing allegations against CA. Gopal Krishan that he was involved in conspiracy with one of the accused Mr. Bal Kishan Bansal (since deceased) the Director General of Corporate Affairs, Ministry of Corporate Affairs, Government of India, who had accepted illegal bribe of Rs.11 lacs, being first installment of bribe from Shiri Vishwa Deep Bansal wherein he had demanded Rs.50 Lacs and agreed to accept Rs.20 Lacs from him for recommending the matter of M/s. Elder Pharmaceuticals Pvt. Ltd. (Company) to Serious Fraud Investigation Office (SFIO) for investigation which was found to have committed certain violations as detected during the inspection conducted by Regional Director, Western Region, Mumbai. The Board further viewed that during the hearing(s) held in the case, CA. Gopal Krishan informed the Board that he had no professional relation with M/s. Elder Pharmaceuticals ltd. and he acted as the Tax Auditor of M/s. Tirupati Pharma from the FY 2013-14 to the FY 2016-2017 and M/s. Intech Pharmacy and provided consultancy to them on Tax matters sought by them. He filed the Income Tax Return of M/s. Tirupati Pharma for the Financial Year 2016-17. The Respondent further submitted that Mr. Vishwadeep Bansal was the proprietor of M/s. Tirupati Pharma and Mr. Amardeep Bansal was the Managing Director of M/s. Intech Pharmacy and they both were brothers. CA. Gopal Krishan also stated that he did not know co-accused B. K. Bansal ( officer of MCA) and had no link with him. On being specifically asked by the Board during the hearing held on 2151 December 2021 about the recorded conversation between him and Late Sh. B.K. Bansal regarding 1st installment of bribe of Rs.11 Lacs and shortage of Rs.11,000/- as per transcript of his Vodafone mobile, CA. Gopal Krishan initially admitted that on persuasion of Managing Director of the Company, he delivered bag containing bribe money to co-accused Bal Kishan Bansal and thereafter tried to avoid the said question on the ground that he will bring his Counsel in the next hearing as this is a technical matter. The Board, considering the documents and submissions on record, observed that offering gratification to a Public servant in return to perform Public function is a serious offence. The Board viewed that the call recordings between CA. Gopal Krishan and co-accused B.K. Bansal, CFSL opinion on voice recordings, transcription of voice recordings and statement of witness Sh. Amit Mittal and examination of CA. Gopal Krishan before it as discussed in its report conclusively proves misconduct on the part of CA. Gopal Krishan. Being a Member of the Institute, CA. Gopal Krishan was expected to adopt the highest Standards of ethical behavior which he failed to do in the instant case. The Board was also of the view that instead of advising his client to follow Rules, the Respondent himself indulged in the activities prohibited by law and thereby has certainly brought disrepute to the entire Profession. Thus, it has already been conclusively held that CA. Gopal Krishan is Guilty of “Other Misconduct” falling within the meaning of Item (2) of Part IV of the First Schedule to the Chartered Accountants Act, 1949 read with Section 22 of the said Act.

Upon consideration of the facts of the case, the consequent misconduct of CA. Gopal Krishan (M. No. 526831) and keeping in view his oral representation before it, the Board decided to Reprimand CA. Gopal Krishan (M. No. 526831) and also imposed a Fine of Rs.25,000/- (Rupees Twenty Five Thousand only} upon him payable within a period of 60 days from the date of receipt of the Order.

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