ICAI Dismisses Complaint Against CA Finding No Evidence of Forgery or Misuse of Digital Signature

The ICAI Disciplinary Committee, constituted under Section 21 B of the Chartered Accountants Act, 1949, has announced its decision on the complaint filed by Shri Rahul Kumar against Chartered Accountant (CA) named Devendra Nath Bhardwaj. As per the registered complaint, the CA was alleged to have committed professional misconduct in relation to M/s VM Classes Private Limited.

The complainant and two other individuals were directors of the aforesaid company at the point of incorporation. The alleged CA had provided professional services for company-related compliance. The CA was alleged to have fraudulently increased the company’s share capital from 15,000 shares to 35,000 shares in collusion with the other two directors. The CA allegedly misused the digital signature of the complainant without his consent.

He was also alleged to have allotted the additional shares only to the other two directors, causing financial loss to the complainant. Further, the complainant stated that his signature was forged on statutory documents such as Form-2 (Return of Allotment) and MBP-1 (Notice of Interest by Directors). Additionally, the CA was asked to provide a few documents relevant to the case, but he failed to furnish them.

However, the alleged CA denied all the allegations levied against him. In conclusion, the Board of Discipline referred the case to the Disciplinary Committee for deep examination. When the committee examined all the relevant documents, expert reports, and submissions from both sides, it could not find any documentary evidence proving misuse of digital signatures, forgery, or lack of due diligence by the respondent.

Since the complainant failed to present any documentary evidence supporting the allegations against the CA, the Disciplinary Committee held the CA not guilty of professional misconduct under the Chartered Accountants Act, 1949.

Click on the link given below to read the complete order