ICAI initiates disciplinary proceedings on 8 arrested CAs for fake GST invoice fraud

The Institute of Chartered Accountants of India (ICAI) has initiated disciplinary proceedings against 8 Chartered Accountants (CAs) who were arrested in the nationwide drive against fake GST invoice frauds since November 2020.

Confirming this move, Atul Kumar Gupta, President, Institute of Chartered Accountants of India (ICAI), told BusinessLine that the Revenue Department’s letter formed the basis for initiation of disciplinary proceedings against these eight Chartered Accountants.

The eighth Chartered Accountant was arrested on Saturday last along with his four business accomplices in Jaipur for operating 25 fake firms to fraudulently avail and pass on Input Tax Credit (ITC) through bogus invoices without actual supplies of goods/services.

ICAI on the implementation of the strict note for these events Gupta comments “in the last 2 financial years (2019-20 and 2020-21) we have disposed of more than 650 cases through disciplinary mechanism wherein prime endeavour, in consonance with the amendments proposed, is to conclude the case within 1 year as against the current period of 2 years.”

From the 650 cases, as many as 400 were held guilty and punishments ranged from a ‘reprimand’ to ‘removal of names’. Hundreds of them have been removed from the register of members, Gupta said.

Going forward also, the endeavour of ICAI would be to conclude the case within one year, he added.

Source: BusinessLine