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Date: 01-Dec-2023 Category: Extra Ordinary State: Union Government Country: India

In terms of the provisions of Section 21B 3 of the Chartered Accountants Act,

Issued by The Institute of Chartered Accountants of India · Not Applicable

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Executive Summary & Key Takeaways

What it means

  • The gazette notification announces the removal of CA. Divakara Shetty (Membership No. 100306) from the Register of Members of the Institute of Chartered Accountants of India (ICAI) for a period of three months, effective from December 1, 2023. This action follows a disciplinary process related to professional misconduct.

Key Changes

  • CA. Divakara Shetty found guilty of professional misconduct under Item (7) of Part I of the Second Schedule to the Chartered Accountants Act, 1949.
  • Initially, the Disciplinary Committee ordered removal from the Register of Members for six months and imposed a fine of Rs. 1,00,000.
  • On appeal, the Appellate Authority modified the order, reducing the removal period to three months while maintaining the fine of Rs. 1,00,000.
  • The removal from the Register of Members is effective from December 1, 2023, for a period of three months.

Impact Analysis

Impact on CA. Divakara Shetty

  • Required to rectify the professional misconduct.

Impact on ICAI

  • Ensure all members are aware of the consequences of misconduct.

Impact on Clients/Public

  • May need to seek alternative Chartered Accountants for services previously provided by CA. Divakara Shetty during the suspension period.

Suggested Action Items

  • Review existing internal controls to prevent future misconduct.

Key Entities Referenced

ICAI (The Institute of Chartered Accountants of India): A statutory body established by an Act of Parliament to regulate the Chartered Accountancy profession in India. CA. Divakara Shetty: A member of ICAI (Membership No. 100306) who has been found guilty of professional misconduct and is subject to the disciplinary action. Chartered Accountants Act, 1949: The primary legislation governing the Chartered Accountancy profession in India, outlining the powers and functions of ICAI and the standards of professional conduct. Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007: Rules outlining the procedures for investigating and handling cases of professional misconduct by Chartered Accountants. Chartered Accountants Regulations, 1988: Regulations framed by ICAI under the Chartered Accountants Act, 1949, providing detailed guidelines for the functioning of the institute and its members. Disciplinary Committee: A committee within ICAI responsible for investigating and adjudicating cases of professional misconduct by Chartered Accountants. Appellate Authority: An authority to which appeals can be made against the orders of the Disciplinary Committee.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-02122023-250382 xxxGIDHxxx CG-DL-E-02122023-250382 xxxGIDExxx असाधारण EXTRAORDINARY भाग III—खण् ड 4 PART III—Section 4 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 790] नई ददल्ली, िुिवार, ददसम्बर 1, 2023/अग्रहायण 10, 1945 No. 790] NEW DELHI, FRIDAY, DECEMBER 1, 2023/AGRAHAYANA 10, 1945 भारतीय सनदी लखे ाकार सस्ट्ं थान, नई ददल्ल ी (ससं दीय अजधजनयम द्वारा स्ट्थाजित) अजधसचू ना नई ददल्ली, 1 ददसम् बर, 2023 (चार्टडट अकाउंर्ेंट्स) स.ं िीआर/72/13-डीडी/263/14/डीसी/565/2017.—चार्टडट अकाउंर्ेंर् (वृज‍ तक और अन् य कदाचार के अन् वेषणोण और मामल के संचालन की प्रदिया) जनयम, 2007 के जनयम 18(17) के साथ िठित, चार्टडट अकाउंर्ेंर् अजधजनयम, 1949 की धारा 21ख(3) के उिबंध के जनबंधनानुसार अनिु ासन सजमजत ने सीए. ददवाकर िेट्टी (सदस्ट्यता संख्या 100306), अिुटन, प्लॉर् न.ं 6 ए, कल्याणग्राम सोसायर्ी, वी िी रोड, अंधरे ी (िजिम), मुंबई (महाराष्ट्र) 400 058, को िूवोक्त अजधजनयम की दसू री अनुसूची के भाग I की मद (7) के अथाटन् तगटत वृजिक कदाचार का दोषणोी िाया ह ै और उसके िठरणामस्ट्वरूि िूवोक्त जनयम के जनयम 19(1) के जनबंधनानुसार सुनवाई का अवसर प्रदान करने के ििात,् सीए. ददवाकर िेट्टी (सदस्ट्यता संख्या 100306) के नाम को 06 (छह) मास की अवजध के जलए सदस्ट्य के रजिस्ट्र्र स े हर्ाने का आदेि ददया ह ै और साथ ही 1,00,000/- रुिय े (केवल एक लाख रुिए) का िुमाटना भी अजधरोजित दकया । सजमजत के आदेि स े व्यजथत होकर, प्र‍यथी ने चार्टडट अकाउंर्ेंर् अजधजनयम, 1949 की धारा 22छ के जनबंधनानुसार अिीलीय प्राजधकरण के समक्ष अिील फाइल की और अिील संख्या 07/आईसीएआई/2023 म ें अिीलीय प्राजधकरण के तारीख 7470 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] 20 अक्तूबर, 2023 के आदेि द्वारा उक्त आदिे को उिांतठरत करते हुए नाम हर्ाने की अवजध को 06 (छह) मास स े 03 (तीन) मास और साथ ही 1,00,000/- रुिय े (केवल एक लाख रुिए) का िुमाटना भी अजधरोजित दकया । तदनुसार, अिीलीय प्राजधकरण के िूवोक्त आदेि के अनुसरण म ें और िवू ोक्त अजधजनयम की धारा 20 की उिधारा (2) द्वारा प्रदि िजक्तय का प्रयोग करते हुए, चार्टडट अकाउंर्ेंर् जवजनयम, 1988 के जवजनयम 18 के अधीन यह अजधसूजचत दकया िाता ह ै दक उक्त सीए. ददवाकर िेट्टी (सदस्ट्यता संख्या 100306) का नाम 1 ददसंबर, 2023 स े 03 (तीन) मास की अवजध के जलए सदस्ट्य के रजिस्ट्र्र स ेहर् िाएगा । सीए. (डा.) िय कुमार बत्रा, सजचव [जवज्ञािन-III/4/असा./572/2023-24] THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA, NEW DELHI (Set up by an Act of Parliament) NOTIFICATION New Delhi, the 1st December, 2023 (CHARTERED ACCOUNTANTS) No. PR/72/13-DD/263/14/DC/565/2017.—In terms of the provisions of Section 21B(3) of the Chartered Accountants Act, 1949 read with Rule 18(17) of the Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007, the Disciplinary Committee has held CA. Divakara Shetty (Membership No. 100306), Arjun, Plot No. 6 A, Kalyangram Society, V P Road, Andheri(West), MUMBAI(Maharashtra) 400 058, guilty of Professional Misconduct falling within the meaning of Item (7) of Part I of Second Schedule to the aforesaid Act and consequently after affording an opportunity of being heard in terms of Rule 19(1) of the aforesaid Rules, ordered for removal of the name of CA. Divakara Shetty (Membership No. 100306) from the Register of Members for a period of 06(Six) months and also imposed a fine of Rs. 1,00,000/-(Rupees One Lakh only). Aggrieved by Order of the Committee, the Respondent preferred an Appeal in terms of Section 22G of the Chartered Accountants Act, 1949 and the Appellate Authority in appeal no. 07/ICAI/2023 vide its order dated 20th October, 2023 has modified the period of removal of name from 06(Six) months to 03(Three) months alongwith a fine of Rs. 1,00,000/-(Rupees One Lakh only). Accordingly, in pursuance of the aforesaid Order of the Appellate Authority and in exercise of the powers conferred by sub-section (2) of Section 20 of the aforesaid Act, it is hereby notified under Regulation 18 of the Chartered Accountants Regulations 1988, that the name of said CA. Divakara Shetty (Membership No. 100306) shall stand removed from the Register of Members for a period of 03(Three) months with effect from 1st December, 2023. CA. (Dr.) JAI KUMAR BATRA, Secy. [ADVT.-III/4/Exty./572/2023-24] Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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