Facts of the Case

A complaint was filed by Shri Sumit Gururani, New Delhi, against CA Mayur Batra, proprietor of M/s Mayur Batra & Co., New Delhi. The complaint alleged that the Respondent was actively involved in various non-professional businesses including real estate, commodities trading, investment advisory, steel processing and trading, while simultaneously holding a Certificate of Practice as a Chartered Accountant.

It was further alleged that the Respondent operated multiple private limited companies and overseas offices, including in Japan, and promoted professional services through his firm’s website and digital platforms. The website allegedly contained photographs, global presence claims, client lists, banners and promotional material amounting to advertisement and solicitation of professional work.

The complainant also alleged that the Respondent secured professional work through non-members, including foreign nationals, and misrepresented his professional standing, thereby violating the Chartered Accountants Act, 1949 and the Code of Ethics.

Issues Involved

Whether the Respondent engaged in business activities while holding Certificate of Practice without permission, whether the Respondent advertised and solicited professional work through website and digital media, whether professional work was secured through non-members, and whether such acts constituted professional misconduct under Items (5), (6), (7) and (11) of Part I of the First Schedule to the Chartered Accountants Act, 1949.

Petitioner’s Arguments

The complainant contended that the Respondent was simultaneously carrying on extensive business activities while holding Certificate of Practice, which is prohibited without prior permission of the Council. It was argued that the Respondent’s website and online content clearly amounted to advertisement and solicitation, showcasing global offices, client base, services and banners, in violation of ICAI Guidelines.

The complainant further submitted that the Respondent secured professional work through non-members and foreign representatives, which is expressly prohibited under the Act and Code of Ethics.

Respondent’s Arguments

The Respondent denied the allegations and submitted that he was not actively involved in the day-to-day operations of the businesses and that his name appeared only as a director or shareholder. He contended that the website content was informational and not intended to solicit professional work.

The Respondent further submitted that some website content was altered due to hacking and that he had no intention to violate ICAI Guidelines. He argued that no specific evidence of securing professional work through non-members was produced.

Court Order / Findings

The ICAI Board of Discipline examined the complaint, website content, MCA records, digital evidence, submissions of both parties, and the Prima Facie Opinion of the Director (Discipline). The Board observed that the Respondent was actively involved in multiple business entities while holding Certificate of Practice and had not obtained prior permission from the Council as required.

The Board noted that the Respondent’s website prominently displayed professional services, global presence, offices, banners and promotional content, which clearly amounted to advertisement and solicitation of professional work. The Board rejected the hacking defence, observing that such contention was raised belatedly and not supported by contemporaneous evidence.

The Board further observed that professional work was secured through non-members, including foreign representatives, which is expressly prohibited. The Board held that the Respondent’s conduct violated ICAI Guidelines on Advertisement and constituted serious professional misconduct.

Important Clarification

The Board clarified that a Chartered Accountant holding Certificate of Practice cannot engage in any other business without prior permission of the Council, and that advertisement, solicitation of professional work and securing work through non-members are strictly prohibited, irrespective of the medium used, including websites and digital platforms.

Final Outcome

The ICAI Board of Discipline held CA Mayur Batra (M. No. 096613) Guilty of Professional Misconduct under Items (5), (6), (7) and (11) of Part I of the First Schedule to the Chartered Accountants Act, 1949.

By order dated 01 February 2022, the Board directed:

  • Removal of the name of CA Mayur Batra from the Register of Members for a period of three (3) months, and
  • Imposition of a fine of ₹1,00,000, payable within 60 days from the date of receipt of the order.

Source Link- https://www.mytaxexpert.co.in/uploads/1768903405_ShriSumitGururanivsCA.MayurBatraM.No.096613NewDelhi.pdf

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