ICAI Holds CA Guilty of Professional Misconduct In ROC Complaint Case:

ICAI Holds CA Guilty of Professional Misconduct In ROC Complaint Case

A complaint was filed by Shri Sanjay Sood, Registrar of Companies (ROC), Karnataka, against CA. Muni Kumar Gubiligari. The allegations involved professional negligence and misconduct in the performance of his duties as a Chartered Accountant, specifically concerning filings and certifications related to the Ministry of Corporate Affairs.

The Disciplinary Committee of the Institute of Chartered Accountants of India (ICAI) conducted an inquiry into the matter, clubbing multiple related files. The Committee reviewed oral and written submissions along with documentary evidence to determine if the Respondent’s actions constituted a violation of the professional ethics and standards prescribed under the Chartered Accountants Act, 1949.

Central Issue: Whether the Respondent is guilty of professional and other misconduct within the meaning of Item (7) of Part I of the Second Schedule and Item (2) of Part IV of the First Schedule to the Chartered Accountants Act, 1949.

Tribunal Ruling: The Disciplinary Committee of the Institute of Chartered Accountants of India held CA Muni Kumar Gubiligari guilty of both professional and other misconduct. He was found liable under Item (7) of Part I of the Second Schedule for failing to exercise due diligence and showing gross negligence in performing professional duties, and under Item (2) of Part IV of the First Schedule for conduct bringing disrepute to the profession.

The Committee noted that he negligently assisted in incorporating nine companies allegedly linked to Chinese entities operating illegal loan apps. He provided incorrect phone numbers to bypass system checks, failed to properly verify identities of directors and subscribers, relied on soft copies instead of original documents, and did not ensure that MOA and AOA were signed in his presence as required under the Companies (Incorporation) Rules, 2014. He also certified registered office addresses without proper verification and submitted misleading certifications regarding share subscription and supporting documents, which the Committee held reflected gross negligence and enabled misuse of the incorporation process. To Read Full Order, Download PDF Given Below