Non-Verification of Documents during MCA Form SPICe Certification: ICAI imposes Penalty of ₹20k on CA

The Institute of Chartered Accountants of India (ICAI) has found Chartered Accountant (CA) Parameswari D. guilty of professional misconduct following a complaint filed by the Registrar of Companies, Ministry of Corporate Affairs. The complaint alleged that Parameswari's involvement in incorporating a company facilitated illegal activities, as the company, with a Chinese national as a major shareholder, operated a loan application not available on the Google Play Store, and a physical verification revealed no company at the registered address. The accusation centered on Parameswari's failure to exercise due diligence while certifying e-forms for incorporation, relying solely on scanned copies of documents without verifying their authenticity or performing necessary engagement procedures. \r

Parameswari failed to produce evidence supporting her claim of document verification, contradicting her declaration on the e-form. Consequently, the committee concluded that she violated Item (7) of Part I of the Second Schedule to the Chartered Accountants Act, 1949, pertaining to gross negligence in professional duties. As punishment, Parameswari D. faces removal from the Register of Members for 60 days and a fine of Rs. 20,000, with an additional 30-day extension if the fine remains unpaid within 90 days.