CA Sansaar
ICAI Imposes Rs. 50,000 Penalty on CA for Holding COP While in Salaried Employment
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The Disciplinary Committee of the Institute of Chartered Accountants of India (ICAI) has held a Chartered Accountant guilty of professional misconduct for holding a full-time Certificate of Practice (COP) while simultaneously being in full-time salaried employment.
The matter arose from a complaint alleging that the member continued to be shown as a partner in a CA firm and maintained an active COP while working in a corporate organization, which is not permitted under the ICAI regulatory framework.
During the proceedings, the Committee examined documentary evidence including ICAI membership records, income-tax documents and Form-16 issued by the employer. The records indicated that the member remained associated with a CA firm and continued paying COP fees for several years while being employed in a full-time corporate position.
The Committee observed that a Chartered Accountant holding a full-time COP cannot simultaneously engage in full-time employment without obtaining the required permissions from the Institute.
The Disciplinary Committee concluded that the conduct amounted to professional misconduct under the Chartered Accountants Act, 1949, including furnishing incorrect information in records submitted to the Institute. Considering the facts and circumstances of the case, the Committee ordered that the member be reprimanded and imposed a monetary penalty of Rs.50,000, which is required to be paid within the prescribed period.
The matter arose from a complaint alleging that the member continued to be shown as a partner in a CA firm and maintained an active COP while working in a corporate organization, which is not permitted under the ICAI regulatory framework.
During the proceedings, the Committee examined documentary evidence including ICAI membership records, income-tax documents and Form-16 issued by the employer. The records indicated that the member remained associated with a CA firm and continued paying COP fees for several years while being employed in a full-time corporate position.
The Committee observed that a Chartered Accountant holding a full-time COP cannot simultaneously engage in full-time employment without obtaining the required permissions from the Institute.
The Disciplinary Committee concluded that the conduct amounted to professional misconduct under the Chartered Accountants Act, 1949, including furnishing incorrect information in records submitted to the Institute. Considering the facts and circumstances of the case, the Committee ordered that the member be reprimanded and imposed a monetary penalty of Rs.50,000, which is required to be paid within the prescribed period.
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