Monday, March 7, 2016

DOD & ICAI Suspends and Fines CA For Cheating, Fraud And Forgery

CA conspired with the director of his client’s company and attempted to take illegal possession of the same

Mumbai: In probably first such order, the Directorate of Discipline (DOD) / Institute of Chartered Accountants of India (ICAI) has ordered the removal of the registration of a chartered accountant (CA) on charges of alleged fraud and for working against the interest of a company.

Four senior panelists of DOD passed the order against CA Harish Ramappa Kanchan for allegedly working against OFS Industries Private Ltd., owned by OK Augusty. Kanchan was accused of conspiring with a director of the company OK Varghese to take illegal possession of the company. DOD and ICAI suspended Kanchan’s membership (no 036608) for six months from the list of CAs. He was also directed to pay a fine of Rs 50,000 in cash.

DOD Order number DD/29/2008/DC/53/2009 also says, “The conduct of the Respondent in this matter is unbecoming of a Chartered Accountant as he failed to bestow the faith reposed by the Society in the Chartered Accountants. Further, the said conduct of the Respondent has brought disrepute to the profession of Chartered Accountancy.”

Punishment Order from ICAI reads, “Keeping in view the facts and circumstances of the case as aforesaid, the material on record and also the oral / written representations of the Respondents and the very serious nature of professional misconduct, the Committee is of the view that the interest of justice would be met if only a severe punishment is awarded to the Respondent.”

The punishment order of ICAI says, “Fined for Rs 50,000 in cash  to be paid in 30 days and name to be suspended from CA’s list for six months under section 21(B)(3) of the Chartered Accountants Act (Amended) 1949.” The letter (no. PR/02/08/DD/29/2008/DC/53/09), sent to Kanchan with the order, bore signature of assistant secretary, DOD, Shashi Mahajan.

The order of the DOD has signature of Presiding Officer G. Ramaswamy, Government Nominee Sk Ghosh, members Nilesh S. Vikamsey and Sumantra Guha. The order found Kanchan guilty under many sections of the Chartered Accountants Act 1949 & the Chartered Accountants (Amendment) Act 2006.

The punishment order has signature of Presiding Officer Manoj Phadnis, Government Nominee SPS Nagar and Joginder Singh. The order found Kanchan guilty under section 2 of the Chartered Accountants Act 1949 & the Chartered Accountants (Amendment) Act 2006.

According to Augusty, the fraud, conspiracy of which started way back in 1998, has brought him to shambles as he lost crores worth property and business due to the long legal battle when he was also forced to made several rounds of the police department and DOD. The fraud also caused a loss of over Rs 1,000 crores to him in last few years, he said.

Augusty alleged that Kanchan and Varghese not only cheated him by using forged signatures, fabricated documents but also usurped his shares and over Rs 200 crores of the company. Due to this shocking misadventure by Kanchan and Varghese, we had not only loss in monetary term but irreparable loss and damage to the legacy of the family.

Augusty also informed that this case is being investigated by the Mumbai police crime branch, as we lodged a complaint against all accused.

For more details contact:
OK Augusty,
CMD, OFS Industries Pvt. Ltd., Mumbai
+91 9870 55 66 99

Digital Copy of the documents available at

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