SC upholds punishment for chartered accountant in Seya Ind case
This story was originally published at 22:08 IST on 1 August 2024
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NEW DELHI – The Supreme Court has upheld the National Financial Reporting Authority's order barring chartered accountant Anil Chauhan and levying a penalty of 2 mln rupees on him for professional misconduct in respect of the statutory audit of Seya Industries Ltd.
"We do not find any good ground and reason to interfere with the impugned judgment; hence, the present appeal is dismissed. Pending application(s), if any, shall stand disposed of," said a bench of Justice Sanjiv Khanna and Justice Sanjay Kumar.
The case has its genesis in the Securities and Exchange Board of India probing the affairs of Seya Industries. The regulator said that since the matter was related to non-compliance with applicable accounting standards by the company and "the conduct and non-cooperation of auditor", the case was referred to the reporting authority for necessary action.
In 2023, the reporting authority issued a letter to the company's auditor seeking various files and information in respect of the audit of Seya Industries for financial years 2018-19 (Apr-Mar) and 2019-20. However, Chauhan did not reply or furnish any information. The reporting authority then issued another letter to him with a reminder request to furnish the information.
When Chauhan failed to reply to the repeated mails by the reporting authority, the latter issued a show-cause notice asking why action should not be taken against the firm and him. Later, the reporting authority barred Chauhan and imposed a penalty on him for professional misconduct. The order was upheld by the National Company Law Appellate Tribunal. End
Reported by Surya Tripathi
Edited by Rajeev Pai
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