2017 (2) TMI 77

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....mplainant and a member of Hilansh CGHS Cooperative Group Housing Society made a complaint against M/s.Anil Garg & Co. informing in the complaint that Anil Garg & Co. were the auditors of the society and had audited the account of the society for the financial years 1999-00, 2000-01, 2001-02, and 2002-03. The audit reports for the years 1999-00 and 2000-01 certified that Rs. 6.88 lacs was deposited by the complainant and was reflected in the ledger account maintained by the society in the name of the complainant. The amount was arbitrarily reduced to Rs. 3.88 lacs as shown in the audit report for the years 2001-02. It was alleged that the respondent had acted in collusion with the Managing Committee of the Society. 4. Copy of the complain....

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....ounced and never entered in the books of accounts during his tenure as Secretary, (b) to find out the correct position of members deposit he has gone through the members deposit register and prepared the correct list which further shows, how Mr.Avtar Vinayak wrongly stated the members deposit be showing lesser amount in other members deposit account and increased Rs. 3,00,000/- in his account and (c) as per certificate issued by M/s. M.M.Goyal & Co. Chartered Accountants Rs. 3 lakh more shown in the name of Mr.Avtar Vinayak and Rs. 1 lakh each were shown less in the accounts of Ms.Aradhana Gupta, Mr.Ashok Kumar Jawa and Mrs. Updesh Kaur. 14.1 As regards the stand taken by the respondent mentioned in point (a) above, the Committee observe....

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....brings out the fact that the respondent had not verified the Annexure attached with the Balance Sheet with the Members Register also. 14.3 The contention of the respondent that he has relied upon on the management's letter cannot be accepted as the respondent has failed in his duty to obtain the confirmation from the members with respect to their balances with the Society, especially when the balance of a member was reduced by Rs. 3 lakhs and it was in the knowledge of the respondent that there was a dispute between old and new management of the society. According to the Committee, the circumstances warranted third party confirmation, which the respondent before issuing the audit report ought to have done as a prudent Chartered Accountan....

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....05, 2010. In spite of notice to appear before the Council the respondent did not appear. 11. At its meetings held in May, 2010 the Council accepted the report of the Disciplinary Committee and held that the respondent was guilty of misconduct as defined under Clauses 5, 6, 7 and 8 of Para I of the 2nd Schedule to the Chartered Accountants Act, 1949. The Council recommended to this Court that name of the respondent be removed from the Registrar of Members. 12. Notice of the reference being served upon the respondent he has filed a counter affidavit which is available at pages 680 to 689 of the record or the instant reference. 13. Having perused the reply we find not a word uttered in the reply to counter the conclusions and the reas....