ICAI debarred CA for 1 month for Professional Misconduct in case of generation of UDIN Prematurely

The Disciplinary Committee of ICAI has debarred Chartered Accountants for 1 month ffor Professional Misconduct in case of generation of UDIN Prematurely.

The Respondent was the auditor of M/s NITP Marketing Services Private Limited (hereinafter referred to as ‘the Company’). The charge against the Respondent was that he generated a Unique Document Identification Number (UDIN) before getting the Balance Sheet for the financial Year 2018-19 signed by the Directors of the Company.

That pursuant to the said findings, an action under Section 21B(3) of the Chartered Accountants Act, 1949 was contemplated against the Respondent and a communication was addressed to him thereby granting an opportunity of being heard in person/through video conferencing and to make representation before the Committee on 19th March 2024.

The Committee noted that on the date of the hearing held on 19th March 2024, the Respondent was present through Video Conferencing Mode and made his verbal submissions on the findings of the Disciplinary Committee. The Committee noted that the Respondent relied on his written submissions dated 14th March 2024 stating as under:

a. That the UDIN was generated in good faith without any malafide intention and without any intention to defeat the purpose of UDIN.

b. That there was a breach of trust by another member of ICAI who certified and uploaded the unauthenticated documents in Form AOC-4 (SRN R21746649), to the MCA portal, based on which the extant complaint was filed.

c. That he neither certified nor uploaded Form AOC-4.

d. That he is not a repeat offender, and this is the only allegation raised against him in his 9 years of professional career.

e. That he will be more cautious and diligent in the performance of his professional duties in the future.

f. That it is requested to take a lenient view and pardon him for this one instance.

The Committee considered the reasoning as contained in the findings holding the Respondent Guilty of professional misconduct vis-à-vis written and verbal representation of the Respondent made before it.

Keeping in view the facts and circumstances of the case and material on record including verbal and written representations on the findings, the Committee is of the view that the Respondent admitted that he generated UDIN before getting the Balance Sheet signed by the Directors of the Company i.e., M/s NITP Marketing Services Private Limited for the financial year ended 2018-19.

The Committee noted that professional misconduct on the part of the Respondent is clearly established as spelt out in its findings dated 25th July 2023 which is to be read in conjunction with the instant Order being passed in the case. The Committee further noted that there is a lack of due diligence on the Respondent’s part, however, no malicious intention of the Respondent was noted in the given matter.

The Committee, hence, viewed that the ends of justice would be met if appropriate punishment commensurate with his professional misconduct is given to him.

Accordingly, the Committee, upon considering the nature of the charge and the gravity of the matter ordered that the name of CA. Tej Prasad Paudel (M.No. 236651) be removed from the Register of Members for a period of 1 (One) month.

For Official Order Download PDF Given Below: