{"id":766,"date":"2015-04-10T00:00:00","date_gmt":"2015-04-09T18:30:00","guid":{"rendered":""},"modified":"2015-12-31T11:03:42","modified_gmt":"2015-12-31T05:33:42","slug":"details-of-action-taken-on-members-by-icai-in-satyam-case","status":"publish","type":"post","link":"https:\/\/taxclick.org\/type\/miscellaneous\/details-of-action-taken-on-members-by-icai-in-satyam-case\/","title":{"rendered":"Details of Action taken on members by ICAI, in Satyam case"},"content":{"rendered":"

As part of ICAI\u2019s 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. <\/span><\/p>\n

\n<\/div>\n

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. <\/span><\/p>\n

\n<\/div>\n

CA.Manoj Fadnis, President, ICAI said \u201cICAI 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.\u201d<\/strong><\/em> <\/span><\/p>\n

\n<\/div>\n

The details of proceedings initiated & conducted against each individual members involved are annexed. <\/span><\/p>\n

\n<\/div>\n

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\u2019s 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\u2019s financials to deceive the public.<\/span><\/p>\n

\n<\/div>\n

CA.Manoj Fadnis, President, ICAI added \u201cICAI respects the decision of Hon\u2019ble 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.”<\/strong><\/em> <\/p>\n


<\/strong><\/em><\/div>\n
<\/p>\n

D<\/strong>et<\/strong>ails of Proceedings
\nInitiated &
\nConducted against each
\nindividual Member<\/strong><\/p>\n

\n

D<\/span><\/strong>et<\/span><\/strong>ails <\/span>of <\/span>Pr<\/span>o<\/span>cee<\/span>din<\/span>gs
\nIn<\/span>itiated &
\nC<\/span>ondu<\/span>ct<\/span>ed against e<\/span>ach
\nind<\/span>ivi<\/span>du<\/span>al
\n<\/span>Mem<\/span>ber<\/span><\/strong><\/p>\n

 <\/p>\n

 <\/p>\n\n\n\n\n\n
\n

S<\/strong>L<\/strong>.<\/strong> No.<\/strong><\/p>\n

 <\/p>\n<\/td>\n

\n

N<\/strong>a<\/strong>m<\/strong>e<\/strong>of<\/strong>th<\/strong>e<\/strong>Ch<\/span><\/strong>art<\/span>e<\/span>re<\/span>d<\/strong>A<\/strong>cc<\/span>oun<\/span>tants<\/strong> (R<\/span>e<\/span>sp<\/span>ondents)<\/strong><\/p>\n

 <\/p>\n<\/td>\n

\n

A<\/strong>ct<\/strong>ion<\/strong>         t<\/strong>aken<\/strong>         b<\/strong>y<\/strong>        the<\/strong> Discipl<\/span>in<\/span>ary<\/strong>               C<\/span>o<\/span>mmi<\/span>tt<\/span>e<\/span>e,<\/strong> App<\/span>ellate<\/strong> <\/span>Au<\/span>thority<\/strong> <\/span>a<\/span>nd<\/strong> <\/span>status<\/strong> of<\/strong> <\/span>the<\/strong> matter<\/span>.<\/strong><\/p>\n

 <\/p>\n<\/td>\n<\/tr>\n

\n

1<\/p>\n

 <\/p>\n<\/td>\n

\n

CA<\/strong>.<\/strong>      S.<\/strong>     G<\/span>opalak<\/span>rishn<\/span>an<\/span>,<\/strong>       Statutor<\/span>y<\/strong>
\n Aud<\/span>itor<\/strong><\/p>\n

(S<\/strong>ign<\/span>in<\/span>g<\/strong>p<\/strong>artner<\/strong>f<\/strong>or<\/strong>th<\/span><\/strong>e<\/strong>p<\/strong>er<\/span>iod<\/strong>1.4.2000<\/strong> to<\/strong> 31.3.2007)<\/strong><\/p>\n

 <\/p>\n<\/td>\n

\n

1. <\/span>The <\/span>Com<\/span>mi<\/span>tt<\/span>ee <\/span>vi<\/span>de <\/span>i<\/span>ts <\/span>Report
\n date<\/span>d23rdJanua<\/span>r<\/span>y<\/span>, <\/span>20<\/span>12 <\/span>found the        Respondent           g<\/span>u<\/span>ilt<\/span>y   of prof<\/span>e<\/span>ssional           misconduct     <\/span>unde<\/span>r
\n Cl<\/span>ause<\/span>s <\/span>(5), <\/span>(6)<\/span>, <\/span>(7) <\/span>(8<\/span>) <\/span>a<\/span>nd <\/span>(9) <\/span>of
\n Part <\/span>I <\/span>of <\/span>Se<\/span>cond <\/span>Sche<\/span>d<\/span>ule <\/span>t<\/span>o <\/span>the
\n Chartered <\/span>Ac<\/span>counta<\/span>nts <\/span>Act, <\/span>1949.
\n The <\/span>Commi<\/span>tt<\/span>ee <\/span>fix<\/span>ed <\/span>t<\/span>he <\/span>hearing
\n for <\/span>awar<\/span>d <\/span>of <\/span>puni<\/span>shm<\/span>en<\/span>t <\/span>on <\/span>22nd Apr<\/span>il, 2012.<\/p>\n

The <\/span>Com<\/span>mi<\/span>tt<\/span>ee <\/span>vi<\/span>de <\/span>it<\/span>s <\/span>order
\n date<\/span>d11th <\/span>May,
\n <\/span>2012, <\/span>awar<\/span>d<\/span>ed
\n the <\/span>punishment <\/span>for <\/span>remo<\/span>val <\/span>of <\/span>the name     fr<\/span>om     the    Register     of
\n Membe<\/span>rs <\/span>perma<\/span>n<\/span>entl<\/span>y <\/span>and <\/span>also imposed <\/span>a <\/span>fine <\/span>of <\/span>R<\/span>s. <\/span>5 <\/span>lac
\n <\/span>on him.<\/p>\n

2.     The     Appe<\/span>llate      Authorit<\/span>y upheld     <\/span>the    dec<\/span>ision     <\/span>of     the Disciplinar<\/span>y <\/span>Comm<\/span>it<\/span>tee<\/span>.<\/p>\n

3.There<\/span>after<\/span>, <\/span>t<\/span>he <\/span>Re<\/span>spondent appr<\/span>oa<\/span>ch<\/span>ed <\/span>the <\/span>Hon<\/span>\u201dbl<\/span>e <\/span>Hig<\/span>h
\n Courtaga<\/span>inst <\/span>t<\/span>he <\/span>orde<\/span>r <\/span>of <\/span>t<\/span>he Disciplinary <\/span>Com<\/span>mi<\/span>tt<\/span>ee<\/span>.      Si<\/span>nce<\/span>,
\n ther<\/span>e <\/span>was <\/span>no <\/span>st<\/span>a<\/span>y <\/span>and <\/span>th<\/span>e <\/span>Instit<\/span>ute
\n has
\n <\/span>publ<\/span>ished <\/span>t<\/span>he <\/span>Noti<\/span>fica<\/span>tion <\/span>for re<\/span>move<\/span>d <\/span>o<\/span>f <\/span>hi<\/span>s <\/span>n<\/span>ame <\/span>p<\/span>er<\/span>mane<\/span>ntl<\/span>y
\n fr<\/span>om
\n the Re<\/span>gister <\/span>of Mem<\/span>bers.<\/p>\n

 <\/p>\n<\/td>\n<\/tr>\n

\n

2.<\/p>\n

 <\/p>\n<\/td>\n

\n

CA<\/strong>.<\/strong> S.<\/strong> Tallu<\/span>ri,<\/strong>
\n S<\/span>tatutor<\/span>y<\/strong> Aud<\/span>itor<\/strong><\/p>\n

 <\/p>\n

(S<\/strong>ign<\/span>in<\/span>g<\/strong>p<\/strong>artner<\/strong>f<\/strong>or<\/strong>th<\/span><\/strong>e<\/strong>p<\/strong>er<\/span>iod<\/strong>1.4.2007<\/strong> to<\/strong> 30.9.2008<\/strong><\/p>\n

 <\/p>\n<\/td>\n

\n

The <\/span>C<\/span>om<\/span>mit<\/span>tee <\/span>vi<\/span>de <\/span>it<\/span>s <\/span>Report
\n date<\/span>d1stFebr<\/span>uar<\/span>y<\/span>, <\/span>2013 <\/span>found t<\/span>he Respondent <\/span>g<\/span>uilt<\/span>y <\/span>of <\/span>p<\/span>rofessional
\n mis<\/span>conduc<\/span>t <\/span>under <\/span>Cl<\/span>ause<\/span>s <\/span>(5), (6)<\/span>, <\/span>(7) <\/span>(8<\/span>) <\/span>and <\/span>(9) <\/span>o<\/span>f <\/span>Part <\/span>I <\/span>of Second <\/span>S<\/span>che<\/span>dule
\n <\/span>to <\/span>the <\/span>C<\/span>hartere<\/span>d
\n Acc<\/span>ountants Act, 1949.The <\/span>Com<\/span>mi<\/span>tt<\/span>ee <\/span>vi<\/span>de <\/span>it<\/span>s <\/span>order date<\/span>d <\/span>21st <\/span>Octobe<\/span>r, <\/span>2013 <\/span>awa<\/span>rde<\/span>d
\n the <\/span>punishment <\/span>for <\/span>remo<\/span>val <\/span>of <\/span>the name  fr<\/span>om     the       Register of<\/p>\n

 <\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

\n\n\n\n\n
\n

 <\/p>\n<\/td>\n

\n

 <\/p>\n<\/td>\n

\n

Members permanently and also
\n imposed a fine of Rs.5 lac on him.<\/p>\n

 <\/p>\n

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

 <\/p>\n<\/td>\n<\/tr>\n

\n

3.<\/p>\n

 <\/p>\n<\/td>\n

\n

CA<\/strong>.<\/strong>P<\/strong>u<\/strong>l<\/strong>avarthi<\/strong>S<\/strong>i<\/strong>va<\/strong> Prasad<\/strong><\/p>\n

(Aud<\/strong>i<\/strong>t<\/strong>In<\/strong>charge<\/strong>f<\/strong>or<\/strong>th<\/strong>e<\/strong>p<\/strong>eriod<\/strong>1.4.2001<\/strong>–<\/strong>31.3.2005)<\/strong><\/p>\n

 <\/p>\n<\/td>\n

\n

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

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

2.The Appellate Authority vide
\n its Order dated 5th     September, 2012 upheld the orders passed by the Disciplinary Committee.<\/p>\n

3.The Respondents have now filed Writ Petition against the
\n Orders of Appellate Authority and the      Disciplinary        Committee
\n before the Hon\u2019ble High Court of
\n Delhi.    
\n  TheHon\u2019bleCourton
\n considerationofthematter,has
\n grantedstaytotheRespondenton the       undertaking       from  the Respondentthathewouldnot practiceasCharteredAccountants tillthetimefinalordersare passed
\n bythe High
\n Court.<\/p>\n

 <\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

\n\n\n\n\n
\n

4<\/p>\n

 <\/p>\n<\/td>\n

\n

CA<\/strong>.<\/strong> Chintapatla<\/strong> Ravindernath<\/strong><\/p>\n

(Aud<\/strong>i<\/strong>t<\/strong>In<\/strong>charge<\/strong>f<\/strong>or<\/strong>th<\/strong>e<\/strong>p<\/strong>eriod<\/strong>1.4.2005<\/strong> \u2013<\/strong> 30.9.2008)<\/strong><\/p>\n

 <\/p>\n<\/td>\n

\n

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

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

2.The Appellate Authority vide
\n its Order dated 5th     September, 2012 upheld the orders passed by the Disciplinary Committee.<\/p>\n

3.The Respondents have now filed Writ Petition against the
\n Orders of Appellate Authority and the      Disciplinary        Committee
\n before the Hon\u2019ble High Court of
\n Delhi. The Hon\u2019ble Court on
\n consideration of the matter,has
\n 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
\n by the High
\n Court.<\/p>\n

 <\/p>\n<\/td>\n<\/tr>\n

\n

5<\/p>\n

 <\/p>\n<\/td>\n

\n

Sh<\/strong>ri<\/strong> V.<\/strong> S.<\/strong> Prabhakara<\/strong> Gupta<\/strong>(then<\/strong> Head<\/strong>
\n of<\/strong>Internal<\/strong>
\n A<\/strong>udit<\/strong>
\n Cell)<\/strong><\/p>\n

 <\/p>\n<\/td>\n

\n

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

The Committee vide its order
\n dated 11th May,2012,awarded<\/p>\n

 <\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n\n\n\n\n
\n

 <\/p>\n<\/td>\n

\n

 <\/p>\n<\/td>\n

\n

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

2.The Appellate Authority vide
\n its order dated 23rd     December, 2013 upheld the decision of the Disciplinary Committee.<\/p>\n

 <\/p>\n<\/td>\n<\/tr>\n

\n

6<\/p>\n

 <\/p>\n<\/td>\n

\n

V<\/strong>.<\/strong> Srinivasu<\/strong><\/p>\n

(th<\/strong>en<\/strong>
\n CFO<\/strong> of<\/strong>the<\/strong>
\n Company)<\/strong><\/p>\n

 <\/p>\n<\/td>\n

\n

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

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

2.The Appellate Authority vide
\n its Order dated 5th     September, 2012 upheld the decision of the Disciplinary Committee.<\/p>\n

3.The name of the Respondent
\n has       been       removed       w.e.f. 08.05.2012.<\/p>\n

 <\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

<\/strong><\/em><\/div>\n","protected":false},"excerpt":{"rendered":"

As part of ICAI\u2019s 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 … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[11],"tags":[148],"yoast_head":"\nDetails of Action taken on members by ICAI, in Satyam case - All About Finance<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/taxclick.org\/type\/miscellaneous\/details-of-action-taken-on-members-by-icai-in-satyam-case\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Details of Action taken on members by ICAI, in Satyam case - All About Finance\" \/>\n<meta property=\"og:description\" content=\"As part of ICAI\u2019s 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 ... 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