In terms of the provisions of Section 21B(3) of the Chartered Accountants Act, 1949 read with Rules 18(17) and 19(1) 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) regarding disciplinary action taken against CA. Maddala Galiswara Rao. The notification details the outcome of a disciplinary committee hearing, finding Mr. Rao guilty of professional misconduct and ordering his name to be removed from the Register of Members for two months, along with a fine of Rs. 5,00,000. The report outlines the background, key provisions, and potential impact of this disciplinary measure. **2. Introduction:** This report aims to provide information and analysis regarding a notification published by the ICAI concerning disciplinary action against one of its members. The analysis is based solely on the content of the provided notification. **3. Policy Overview:** This notification is related to the existing regulatory framework governing chartered accountants, specifically concerning professional misconduct and disciplinary procedures. The core objective, as inferred from the text, is to maintain the integrity and ethical standards of the chartered accountancy profession by addressing and penalizing instances of professional misconduct. The notification serves to communicate the outcome of a specific disciplinary case and its consequences. **4. Background and Rationale:** This document details the fallout of professional misconduct on the part of the mentioned CA. This specific action appears to address a violation of professional ethics and standards within the chartered accountancy profession. The notification signals the commitment of the ICAI to uphold professional conduct and discipline within its membership. **5. Key Provisions / Changes:** This document concerns enforcement of previously standing rules and regulations, rather than a new policy. The document specifies the following key action, in terms of changes for the named individual: * **Action:** Removal of CA. Maddala Galiswara Rao's name from the Register of Members. * **Duration:** Two months, effective from November 26th, 2021. * **Action:** Imposition of a fine. * **Amount:** Rs. 5,00,000. * **Status:** The fine has been received. * **Secondary Action (if fine not received):** Had the fine not been received within three months, his name would have been removed for a further period of two months. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders are: * **CA. Maddala Galiswara Rao:** The individual directly affected by the disciplinary action. * **Members of the ICAI:** The notification serves as a reminder of the ethical standards and potential consequences of misconduct. * **Clients and the Public:** The notification provides transparency regarding the ICAI's disciplinary processes and its commitment to maintaining professional standards. **7. Implementation Aspects (Inferred):** * **Responsible Agency:** The Disciplinary Committee of the ICAI is responsible for conducting the investigation and issuing the order. The Secretary of the ICAI is responsible for issuing the notification. * **Timelines:** The removal from the register is effective from November 26th, 2021, for a period of two months. The original deadline for paying the fine was three months from the date of the order (not specified, but assumed to be around the date of the notification). * **Procedures:** The notification references Section 21B3 of the Chartered Accountants Act, 1949, Rules 1817 and 191 of the Chartered Accountants Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases Rules, 2007, and Regulation 18 of the Chartered Accountants Regulations, 1988, indicating the legal and procedural framework governing the disciplinary action. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of this disciplinary action are: * **Deterrence:** To deter other members of the ICAI from engaging in similar professional misconduct. * **Remediation:** To rectify the specific instance of misconduct and hold the individual accountable. * **Maintaining Public Trust:** To demonstrate the ICAI's commitment to upholding ethical standards and maintaining public trust in the chartered accountancy profession. * **Professional Reprocussions:** The loss of professional abilities on behalf of CA. Rao during the period of suspension. **9. Conclusion:** The notification details disciplinary action taken against CA. Maddala Galiswara Rao for professional misconduct. The action involves a temporary removal from the Register of Members and a fine, both aimed at upholding the ethical standards of the profession. The notification underscores the ICAI's commitment to regulating the conduct of its members and maintaining public trust.

Key Entities Referenced