Chartered Accountant held Guilty of Professional Misconduct for holding position of Director in Company; ICAI imposes Rs. 50,000 Fine

Chartered Accountant held Guilty of Professional Misconduct for holding position of Director in Company; ICAI imposes Rs. 50,000 Fine Institute of Chartered Accountant of India [ICAI] Disciplinary Committee was inter-alia of the opinion that CA. Gurudas Saha (M. No. 104292) (hereinafter _referred to as the Respondent") was GUILTY of professional misconduct falling within the meaning of Item {3) of Part I of the Second Schedule to the Chartered Accountant Act -1949. The Committee noted that the Respondent was not present before the Bench. The Committee noted that no communication is received from the Respondent despite of the fact the notice was sent to him through speed post/email on 28th May 2021 which was duly received by him. The Committee noted that this case was earlier fixed on 27th May 2021 and was adjourned at the request of Respondent made by him vide email dated 26th May 2021. The Committee has noted that the Respondent is represented by his learned counsel. The Respondent is not present in person. The Committee has noted the submissions of the Respondent that his client was only a Director Simplicitor and was not involved in day-to-day operations. He further submitted that the Respondent neither had signed any cheque nor had attended office on any day. He further submitted that since other directors of the Company were young, hence the Respondent due to his experience in the recovery field was helping the Companies in emergent situations. He also submitted that such helping cannot be construed as involvement in day-to-day activities. The Committee while looking into the matter and the conduct of the Respondent, is of the opinion that it is clearly coming out from findings that the Respondent had given the wrong declaration under Regulation 190A of the Chartered Accountants Regulations, 1988 whereas his role was more than director simplicitor and he was involved in day to day working of the Company. Therefore, keeping in view the facts and circumstances of the case, material on record and submissions of the Respondent before it, the Committee ordered that the Respondent i.e. CA. Gurudas Saha (M. No. 104292), be reprimanded with the fine of Rs.50,000/- (Fifty Thousand Rupees) to be payable by him within a period of 30 days of receipt of the order and in case of non-payment of fine, the name shall be removed for 15 (Fifteen) days.