CA who gave gold chain as referral Fees solicited his work, thus guilty of professional misconduct

The Disciplinary Committee of ICAI in the matter of Shri N. Anjaneya Verma has held CA guilty of professional misconduct when he gave gold chain as referral Fees solicited his work.

The Board of Discipline vide Findings dated 10th February 2023 was of the view that CA. Vinod Kumar Vishwanath (M. No.214598) is Guilty of Professional Misconduct falling within the meaning of Item (6) of Part-I of the First Schedule to the Chartered Accountants Act, 1949.

An action was contemplated against CA. Vinod Kumar Vishwanath (M. No.214598) under Section 21A (3) of the Chartered Accountants Act, 1949, and a communication dated 27th March 2023 was addressed to him, granting him an opportunity to be heard in person and/or make written representation before the Board on 19th April 2023.

CA. Vinod Kumar Vishwanath (M. No.214598) was not present before the Board on 19th April 2023. The Board also noted that the Notice dated 27th March 2023 sent at the professional/residential address of the Respondent as per the Member records of ICAI informing the Respondent of the date of hearing for award of punishment had been received back undelivered with the comments ‘left without instructions’. However, a scanned copy of the said Notice was also sent at the email ­id of the Respondent which is registered with the Member records of ICAI and a delivery of the said communication to the said email-id was also complete as per intimation received. Further, since no request for adjournment had been received and the Respondent’s written representation dated 23rd February 2023 on the Findings of the Board was already on record, the Board decided to consider his case for award of punishment keeping in view the provisions of Rule 15(1) of the Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007.

CA. Vinod Kumar Vishwanath (M. No.214598), in his written representation, inter­alia, submitted as under:

(i) On 24th February 2018 he shared his profile to the official email id of Mr. TVL Narasimha Rao- A practicing Insolvency Professional and a lawyer for working together as Insolvency Professional on future assignments and not related to CA work.

(ii) He and Mr. TVL Narasimha Rao-Practicing Insolvency Professional and Lawyer were working together on assignments related to IBC (Insolvency and Bankruptcy Code 2016) and not related to CA work.

(iii) Neither he requested nor did he give any permission to Mr. T.V.L Narasimha Rao to share his profile with his clients for any work.

(iv) Just because after he got the fee amount from the Complainant, the payment of referral fees cannot be related to the assignment given by the Complainant.

(v) The referral fees paid by him do not relate to the Assignment relating to the Complainant as the Board of Discipline itself stated that it is for the amenities by the Insolvency Professional. Then, how can the above assignment get solicited with the fees paid by the Amenities?

The Board has carefully gone through the facts of the case along with the written representation of the Respondent.

As per the findings of the Board as contained in its report, the Respondent has not shared his fees with a professional but has admittedly gifted him a gold chain worth Rs. 55,000/- as referral fees which is a clear Professional Misconduct falling within the meaning of Item (6) of Part I of the First Schedule. The Board was of the view that the submission of the Respondent that he did not solicit work but only shared his CV with the lawyer who subsequently referred him to the Complainant for the assignment of preparation of the statement of affairs and provisional accounts and he gifted gold chain out of courtesy from a small amount of his earnings to the lawyer for the amenities i.e. office space to work, food and accommodation to his assistant, etc. provided by him without demanding any rent for the same is not acceptable as the conduct and categorical admission of the Respondent that he gave the gold chain as referral fees clearly shows that he solicited his work through the lawyer which clearly amounts to Professional misconduct falling within the meaning of Item (6) of Part I of the First Schedule to the Chartered Accountants Act 1949. Accordingly, the Board held the Respondent Guilty of Professional Misconduct falling within the meaning of Item (6) of Part-I of the First Schedule to the Chartered Accountants Act, 1949.

Thus, upon consideration of the facts of the case, the consequent misconduct of CA. Vinod Kumar Vishwanath (M. No.214598) and keeping in view his written representation before it, the Board decided to Reprimand CA. Vinod Kumar Vishwanath (M. No.214598).

For Official Order Download PDF Given Below: