CA Guilty of Professional Misconduct; Reprimanded by ICAI for Role in Fraudulent Bank Loan Transaction

The Institute of Chartered Accountants of India (ICAI) has issued an official disciplinary order against a chartered accountant named CA Gopal Pitti. The CA is found guilty of professional misconduct after an investigation and hearing process.

Background of Case

The case began when Shri Sudip Roy, a senior officer (Superintendent of Police) from the Central Bureau of Investigation (CBI), Kolkata, under the Economic Offences Wing, filed a complaint against CA Gopal Pitti of Kolkata. In 2011, a car (Honda City, Reg. No. WB 06C 8250) originally owned by Pushpendra Baid, director of some companies (HVPL and Tarun Textiles Pvt Ltd, which had huge loans and were declared as non-performing assets), was transferred to Rakesh Kumar Singh, then chief manager of Allahabad Bank. The twist in this case is that Rakesh Kumar Singh did not actually pay anything for the car; it was transferred to him for free. In 2012, Rakesh applied for a car loan of Rs. 4 lakh from Allahabad Bank to cover the above misdeed, pretending to buy a second-hand car from a dealer called M/s First Drive.

When the case was investigated by CBI, it was revealed that Gopal Pitti helped prepare fake documents, such as a bill/delivery challan, displaying that Rakesh Singh bought the car from M/s First Drive for Rs. 4.7 lakh. These bogus documents were then used by Rakesh Singh to take a loan from the bank. After successfully getting the load, Rs. 4.7 lakh was routed through First Drive to a company named Hena Vincom Pvt Ltd and then converted back into cash and handed to Rakesh Singh, allegedly by CA Gopal Pitti.

The investigation was carried out under the Chartered Accountants Act, 1949, and the rules for misconduct cases under ICAI. Multiple hearings took place on 4th May 2023 (first hearing: adjourned at Gopal Pitti’s request), 28th July 2023 (second hearing: partly heard and then adjourned), and 20th March 2024 (final hearing: completed in Kolkata). The hearing was attended by Gopal Pitti through a video call in July 2025, and he was given a proper chance of hearing.

ICAI’s Observations

On detailed analysis, the ICAI discovered that Rakesh Singh used fake documents to get approval of a loan (Rs. 4 lakh) for a car he already owned. These documents were prepared with the help of CA Gopal Pitti. The email was the evidence, where documents were sent to Anil Agarwal. The loan amount received from the bank was routed via First Drive and Hena Vincom, and then cash was allegedly given to Rakesh Singh, with Gopal Pitti involved in coordinating it. Although no criminal charges were officially framed against Gopal Pitti in the chargesheet of the CBI, ICAI concluded that he had full knowledge and active involvement in the fraudulent transaction.

The ICAI Board of Discipline found CA Gopal Pitti guilty of professional misconduct as per the Chartered Accountants Act, 1949, on May 30, 2024. Later, after hearing both sides, on July 29, 2025, the Board issued a formal Order of Reprimand. This is a formal warning, not a suspension or removal, but still a serious mark on his professional record.