Details of Action taken on members by ICAI, in Satyam case

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As part of ICAI’s continuous drive to uphold the credibility, integrity and image of the accountancy profession in India, the regulatory mechanism of the Institute of Chartered Accountants of India (ICAI) is working assiduously. ICAI has been taking disciplinary action against its errant members as per the provisions of the Chartered Accountants (Amendment) Act, 2006 and Rules framed there under. 

In the wake of Satyam scam, disciplinary action was initiated against S. Gopalakrishnan & S. Talluri, the concerned partners of the Statutory Audit firm, P. Siva Prasad & C. Ravindernath, Audit Incharge(s) from the said Audit firm, V. Srinivasu, then CFO of Satyam and V. S. Prabhakara Gupta, Head of Internal Audit Department of Satyam. After completion of enquiry against the aforesaid persons, the Disciplinary Committee having found them guilty of professional misconduct had awarded the maximum punishment of removal of their name(s) from the Register of Members permanently and also imposed a fine of Rs. 5 lakh each on them. 

CA.Manoj Fadnis, President, ICAI said “ICAI initiated the proceedings in the Satyam case in Jan, 2009 immediately after the same was reported in the Media. ICAI initiated Disciplinary proceedings against the concerned members & the proceedings were completed in October, 2010 in all cases except one and reached finality in October, 2013 with the last case. The Appellate Authority constituted under Section 22A of the Chartered Accountants (Amendments) Act, 2006 in all cases, except one case which is yet to be decided by the said Authority also upheld the decision of ICAI.” 

The details of proceedings initiated & conducted against each individual members involved are annexed. 

While law took its own course, today a special court sentenced the founder of the erstwhile Satyam Computer Services Ltd. and nine others to seven years of rigorous imprisonment after convicting them in India’s biggest case of corporate fraud. The CBI had charged the 10 suspects with collaborating to inflate revenue, fabricate invoices, falsify accounts and income tax returns and fake fixed deposit receipts to paint a rosy picture of the company’s financials to deceive the public.

CA.Manoj Fadnis, President, ICAI added “ICAI respects the decision of Hon’ble special Court which further validates the decision taken by the Institute. ICAI is committed to ensure justice in all disciplinary cases and thereby upholding the values of Excellence, Independence and Integrity which form the benchmarks of the profession.”


Details of Proceedings
Initiated &
Conducted against each
individual Member

Details of Proceedings
Initiated &
Conducted against each
individual
Member

 

 

SL. No.

 

NameoftheCharteredAccountants (Respondents)

 

Action         taken         by        the Disciplinary               Committee, Appellate Authority and status of the matter.

 

1

 

CA.      S.     Gopalakrishnan,       Statutory
Auditor

(Signingpartnerfortheperiod1.4.2000 to 31.3.2007)

 

1. The Committee vide its Report
dated23rdJanuary, 2012 found the        Respondent           guilty   of professional           misconduct     under
Clauses (5), (6), (7) (8) and (9) of
Part I of Second Schedule to the
Chartered Accountants Act, 1949.
The Committee fixed the hearing
for award of punishment on 22nd April, 2012.

The Committee vide its order
dated11th May,
2012, awarded
the punishment for removal of the name     from     the    Register     of
Members permanently and also imposed a fine of Rs. 5 lac
on him.

2.     The     Appellate      Authority upheld     the    decision     of     the Disciplinary Committee.

3.Thereafter, the Respondent approached the Hon”ble High
Courtagainst the order of the Disciplinary Committee.      Since,
there was no stay and the Institute
has
published the Notification for removed of his name permanently
from
the Register of Members.

 

2.

 

CA. S. Talluri,
Statutory Auditor

 

(Signingpartnerfortheperiod1.4.2007 to 30.9.2008

 

The Committee vide its Report
dated1stFebruary, 2013 found the Respondent guilty of professional
misconduct under Clauses (5), (6), (7) (8) and (9) of Part I of Second Schedule
to the Chartered
Accountants Act, 1949.The Committee vide its order dated 21st October, 2013 awarded
the punishment for removal of the name  from     the       Register of

 

 

 

Members permanently and also
imposed a fine of Rs.5 lac on him.

 

2.The Respondent has filed an Appeal     before     the    Appellate Authority against the order of the
Disciplinary Committee and the same is yet to be decided by the
Appellate
Authority.

 

3.

 

CA.PulavarthiSiva Prasad

(AuditInchargefortheperiod1.4.2001–31.3.2005)

 

The Committee vide its Report dated 6th October,2010 found the
Respondent guilty of professional
misconduct under Clause(1)of Part II of Second Schedule and
Clause(7) of Part I of Second Schedule      to      the      Chartered
Accountants Act, 1949.

The Committee vide its order
dated     5th       December,       2011, awarded     the   
 punishment     for removal of the name from the Register of Members permanently and also imposed a fine of Rs.5 lac on him.

2.The Appellate Authority vide
its Order dated 5th     September, 2012 upheld the orders passed by the Disciplinary Committee.

3.The Respondents have now filed Writ Petition against the
Orders of Appellate Authority and the      Disciplinary        Committee
before the Hon’ble High Court of
Delhi.    
 TheHon’bleCourton
considerationofthematter,has
grantedstaytotheRespondenton the       undertaking       from  the Respondentthathewouldnot practiceasCharteredAccountants tillthetimefinalordersare passed
bythe High
Court.

 

4

 

CA. Chintapatla Ravindernath

(AuditInchargefortheperiod1.4.2005 – 30.9.2008)

 

The Committee videits Report dated 6th October,2010 found the
Respondent guilty of professional
misconduct under Clause(1)of Part II of Second Schedule and
Clause(7) of PartI of Second Schedule      to      the      Chartered
Accountants Act, 1949.

The Committee vide its order
dated     5th       December,       2011, awarded     the   
 punishment     for removal of the name from the Register of Members permanently and also imposed a fine of Rs.5 lac on him.

2.The Appellate Authority vide
its Order dated 5th     September, 2012 upheld the orders passed by the Disciplinary Committee.

3.The Respondents have now filed Writ Petition against the
Orders of Appellate Authority and the      Disciplinary        Committee
before the Hon’ble High Court of
Delhi. The Hon’ble Court on
consideration of the matter,has
granted stay to the Respondenton the       undertaking       from  the Respondent that he would not practice as Chartered Accountants till the time final orders are passed
by the High
Court.

 

5

 

Shri V. S. Prabhakara Gupta(then Head
ofInternal
Audit
Cell)

 

The Committee vide its Report dated 8th February,2012 found
the      Respondent      guilty      of professional      misconduct     under
Clauses(7)(8)and(9) of Part I
and Clause(1)of Part II of Second     Schedule     and   
 Other
Misconduct falling with in the meaning of Clause(2) of Part IV of First Schedule to the Chartered Accountants Act, 1949.

The Committee vide its order
dated 11th May,2012,awarded

 

 

 

the punishment for removal of the
name     from     the    Register     of
Members permanently and also imposed a fine of Rs.5 lac on him.(It is to mention that the
name of the Respondent stands removed on account of non-payment of membership fees by
the Respondent)

2.The Appellate Authority vide
its order dated 23rd     December, 2013 upheld the decision of the Disciplinary Committee.

 

6

 

V. Srinivasu

(then
CFO ofthe
Company)

 

The Committee vide its Report dated 3rd January,2012 found the
Respondent guilty of professional
misconduct under Clause(1)of PartII of Second Schedule and
Clause(7) of Part I of Second Schedule and Other Misconduct
falling within the meaning of
Clause(2) of PartIV of First
Schedule      to      the      Chartered
Accountants Act, 1949.

The Committee vide its order
dated 23rd January,2012,awarded
the punishment for removal of the name     from     the    Register     of
Members permanently and also imposed a fine of Rs.5 lacon him.

2.The Appellate Authority vide
its Order dated 5th     September, 2012 upheld the decision of the Disciplinary Committee.

3.The name of the Respondent
has       been       removed       w.e.f. 08.05.2012.

 

 

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2 thoughts on “Details of Action taken on members by ICAI, in Satyam case”

  2. What is the minimum and maximum punishment of professional misconduct of clauses (7) & (8) of Part I of second schedule to the chartered Accountant (Amendment) Act 2006 of the Chartered Accountants (Procedure of Investigations of professional and other misconduct and conduct of cases) Rules 2007

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