ICAI Removes CA for 2 Years and Imposes Rs. 1.5 Lakh Fine for Professional Misconduct

A complaint was filed by officials of ICICI Bank Ltd. against CA V. Balasubramanyan, partner of M/s Sarathy & Balu. After investigation, the Disciplinary Committee (DC) in its findings dated 11th February 2021 held that the Respondent was guilty of professional misconduct under Items (5), (7), and (8) of Part I of the Second Schedule to the Chartered Accountants Act, 1949.

The allegations were related to lapses in professional duties while certifying/attesting certain documents that were later found to be unreliable, causing concerns for the complainant bank.

Issues Raised: Whether the Respondent CA failed to exercise due diligence and thereby committed professional misconduct under Items (5), (7), and (8) of Part I, Second Schedule of the CA Act, 1949. If yes, then what punishment should be imposed, considering the gravity of the misconduct?

Committee’s Ruling: The Committee noted that the Respondent was already held guilty under Rule 18(17) in 2021. Under Section 21B(3) read with Rule 19(1) of the CA (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007, the Committee considered the quantum of punishment. After hearing both sides on 30th July 2025, the Committee passed its Punishment Order on 9th August 2025.

The Respondent CA  was held guilty of professional misconduct under Items (5), (7), and (8) of Part I, Second Schedule of the CA Act. Accordingly, the Committee ordered removal of his name from the Register of Members for a period of 3 years, and imposition of a monetary fine of Rs. 1.5 Lacs to be deposited within 90 days.

To Read Full Order, Download PDF Given Below