- (1.) This is a reference under Section 21 (5) of the Chartered Accountants Act, 1949 in respect of a Chartered Accountant Satish Kumar Gupta of Ghaziabad who has been held guilty of "other mis-conduct" falling under Section 22 read with Section 21 of the Act by the disciplinary Committee of the Council of the Institute of Chartered Accountants of India by treating the letter of the Securities Exchange Board of India (SEBI) dated 1st August 2017 as information that the aforesaid Chartered Accountant has committed "other misconduct".
(2.) As many as four charges were framed against him. The said charges interalia were as follows:- i) The Chartered Accountant described himself as having over all control of the management of Brahaspati Finance Limited (in short BFL) in its prospectus even though he had resigned as its Director prior to opening of the public issue; (ii) He has lent his name to the prospectus issued in connection with public issue of BFL thereby misleading investors and inducing them to subscribe to its shares; (iii) He had made a mis-statement in prospectus and had mislead SEBI by providing a forged Chartered Accountant Certificate; and (iv) If any of the aforesaid charges is proved, he would be guilty of other misconduct under Section 22 read with Section 21 of the Act.
(3.) All papers relating to the aforesaid information, the reply submitted by the Chartered Accountant with letter framing charges and the written statement as filed by the Chartered Accountant were placed before the Council in accordance with Regulation 12 (11) of the Chartered Accountant Regulations, 1988 in its meeting held in August 2008 at New Delhi. The Council on being prima-facie satisfied that he is guilty of "professional/other mis-conduct" opined for holding an inquiry in the matter by the disciplinary Committee.;