In terms of the provisions of Section 21A(3) of the Chartered Accountants Act, 1949 read with sub rule (9) of Rule 14 of the Chartered Accountants

## Report on Notification Regarding Disciplinary Action by the Institute of Chartered Accountants of India **1. Executive Summary:** This report analyzes a notification issued by the Institute of Chartered Accountants of India (ICAI) on November 26, 2021, regarding disciplinary action taken against a member, CA. Khem Chand Gandhi. The notification details the reasons for the disciplinary action, including a finding of "Other Misconduct," and outlines the penalties imposed: removal from the Register of Members for one month and a fine of Rs. 1,00,000. The notification is issued in accordance with the Chartered Accountants Act, 1949 and related regulations. The key finding is that the ICAI is actively enforcing its code of conduct and taking action against members found guilty of misconduct. **2. Introduction:** This report provides an overview of a notification published by the ICAI regarding disciplinary action against one of its members. The report is based solely on the information contained within the provided document and aims to inform stakeholders about the specific action taken and its implications. **3. Policy Overview:** This notification falls under the broader framework of the Chartered Accountants Act, 1949, and the Chartered Accountants Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases Rules, 2007. * Core Objective(s) (inferred): The core objective is to maintain the integrity and ethical standards of the chartered accountancy profession by enforcing disciplinary measures against members found guilty of misconduct. **4. Background and Rationale:** This notification represents the outcome of a disciplinary process undertaken by the ICAI's Board of Discipline. The likely reason for this specific action is to address a violation of the ethical and professional standards expected of chartered accountants. The notification suggests that CA. Khem Chand Gandhi was found to have engaged in "Other Misconduct," as defined in the First Schedule of the Chartered Accountants Act, warranting disciplinary action. **5. Key Provisions / Changes:** This is not an amendment, but a notification of action taken under existing rules. The key provision is the disciplinary action taken against CA. Khem Chand Gandhi: * **Specific Action:** Removal of CA. Khem Chand Gandhi from the Register of Members for a period of one month. * **Additional Penalty:** Imposition of a fine of Rs. 1,00,000. * **Basis for Action:** A finding of "Other Misconduct" falling within the meaning of Clause 2 of Part IV of the First Schedule read with Section 22 of the Chartered Accountants Act. **6. Target Audience and Stakeholders:** The direct target audience and stakeholders affected by this notification include: * CA. Khem Chand Gandhi: The individual directly subject to the disciplinary action. * Members of the ICAI: As a signal about maintaining standards. * Clients and stakeholders of CA. Khem Chand Gandhi: Who should know that he is unable to practice. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Board of Discipline of the ICAI is the responsible body for conducting the investigation and recommending the disciplinary action. The ICAI itself, through the Acting Secretary, CA. Dr. Jai Kumar Batra, is responsible for implementing the decision and notifying the public. * **Timelines:** The notification states that the removal from the Register of Members is effective from November 26, 2021, and lasts for one month. * **Procedures:** The action is taken "In pursuance thereof and in exercise of the powers conferred by subsection 2 of Section 20 of the aforesaid Act." This suggests adherence to a defined legal and regulatory procedure within the ICAI's disciplinary framework. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of this disciplinary action include: * **Deterrence:** To deter other members from engaging in similar misconduct. * **Maintaining Public Trust:** To uphold the integrity of the chartered accountancy profession and maintain public trust in the ICAI. * **Compliance:** Ensuring adherence to ethical and professional standards. * **Temporary Incapacity:** CA. Khem Chand Gandhi will be unable to practice as a chartered accountant for the duration of the suspension. **9. Conclusion:** The notification regarding the disciplinary action against CA. Khem Chand Gandhi underscores the ICAI's commitment to enforcing its code of conduct and taking action against members found guilty of misconduct. The action serves as a reminder of the importance of upholding ethical and professional standards within the chartered accountancy profession. The ICAI's active enforcement contributes to maintaining the integrity and reputation of the profession.

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