Held: In the instant case, the Respondent certified e-forms DIR-12 relating to the resignation of the Complainant as director and the appointment of new directors in the Company. The Committee noted that although the Respondent claimed to have verified the resignation letter, acceptance letter and other supporting documents before certifying the form relating to resignation of the Complainant, he failed to produce any documentary evidence, including the email through which the resignation letter was allegedly received, despite specific directions of the Committee. The Committee observed that while the Respondent had declared that he had verified original/certified copies of the documents, he was unable to produce the same during the disciplinary proceedings. In the absence of any supporting evidence, the Respondent failed to establish that he had exercised due diligence before certifying the e-form. The Committee further noted that the Respondent certified the DIR-12 relating to appointment of a director using the digital signature of the Complainant on 11th June 2018, despite his own descriptionion that the Complainant had resigned from the Company on 29th March 2018. Accordingly, the Respondent ought to have verified the validity of such appointment before certifying the form. The Committee also observed that the subsequent appointment of another director was certified using the digital signature of a person whose own appointment had not been validly established. Further, the Respondent failed to verify the eligibility of the signatories and did not furnish records such as IP details or any other supporting documents relating to the certification process. Consequently, the Committee held that the Respondent failed to exercise due diligence in the conduct of his professional duties while certifying the aforesaid e-forms and was therefore guilty of professional misconduct under Item (7) of Part I of the Second Schedule to the Chartered Accountants Act, 1949. [PR-278/18/DD/281/2018/DC/1361/2020]

Held: In this case, the Respondent, while serving as Finance Manager of the Company was responsible for handling finance-related matters, including distribution of salaries to employees. It was alleged that the Respondent embezzled a portion of the salary amounts payable to employees by manipulating salary payments and disbursing amounts lower than those approved by the management. It was further alleged that the Respondent forged the signatures of the authorized official on salary documents for carrying out such transactions. The Committee noted that the Respondent did not dispute the fact that he had been convicted by the competent courts in the UAE and that penalties had been imposed upon him. The Committee observed that the disciplinary proceedings before ICAI were independent of the judicial proceedings and that the principle of res judicata was not applicable in determining professional misconduct under the Chartered Accountants Act, 1949. The Committee further noted that the Respondent failed to rebut the allegations on merits and primarily relied on legal objections. The Committee also observed that documentary evidence on record established that the Respondent had represented himself as a Chartered Accountant and that his appointment as Finance Manager was based upon his professional qualification. Further, both the civil and criminal courts in the UAE had held the Respondent guilty for embezzlement of the Company's funds and imposed monetary penalties and other punishments. The Committee noted that the findings regarding embezzlement and forgery had not been refuted by the Respondent. The Committee observed that a Chartered Accountant is expected to maintain the highest standards of integrity, ethical conduct and professional behavior and that the Respondent's actions were inconsistent with such standards and had brought disrepute to the profession. Accordingly, the Committee held the Respondent guilty of Professional and Other Misconduct under Item (4) of Part II of the Second Schedule and Item (2) of Part IV of the First Schedule to the Chartered Accountants Act, 1949. [PR/114/18-DD/187/18-DC/1366/2020]