fiogf49gjkf0d
Procedure of Enquiry (Continued) – Part III Shrikrishna
(S) — Oh Arjun. You are coming just now? I was about to leave.
A — Sorry. I was held up in the income tax office. S — So late in the evening? Surprising! Government officers have become so sincere?
A — N o. This is the result of not working sincerely when they should have worked. Now scrutiny assessments are getting timebarred. So they make us dance!
S — But that is upto 31st of March. Isn’t it?
A — Y es. But sometimes some ‘special work’ remains. That needs to be completed in April.
S — A nyway. You wanted to know something about disciplinary proceedings.
A — Y es. That my friend has sent a reply to the Institute. I mean, to Director-Discipline.
S — N ow, as I told you, it will be sent to the complainant. He will write a rejoinder. After that, the disciplinary directorate will decide whether the respondent – that means your friend – is prima facie guilty or not.
A — T hat much you told me last time. I want to know how the enquiry is conducted.
S — See, if you are prima facie guilty, you are again given an opportunity to submit your explanation to the prima facie opinion. Then you are called for enquiry.
A — I s it always at Delhi? S — I t depends. Usually the Disciplinary Committee (‘DC’) or Board of Discipline (‘BOD’) holds a camp of one or two days in all major cities by rotation.
A — Y ou mean, they go to various places with all the records?
S — Y es. Mumbai, Ahmedabad, Chennai, Bengaluru, Kolkata etc. They carry all the records. Their staff members also travel with the members of DC or BOD.
A — O h!
S — T he record they carry is massive! Nothing is left in the regional offices. It is totally centralised.
A — O K. How do they hold an enquiry?
S — See. If it is a First Schedule offence, it is before BOD.
A — Who are on BOD?
S — P resident, another Central Council Member (CCM) and a Government nominee. Two members form a quorum.
A — And DC?
S — D C deals with offences covered under Second Schedule or when there are offences under both the Schedules. I t consists of 5 members. President, 2 CCMs and 2 Government nominees. Quorum is of three. But at least one Government nominee’s presence is a must. That is not so for BOD.
A — Complainant is also present?
S — Yes. He and his counsel also, if any.
A — But what if complainant does not come?
S — Still, the enquiry is conducted.
A — Do they give adjournments?
S — Y es. But only once! You cannot repeatedly seek time unlike your tax proceedings.
A — R espondent also can take a counsel?
S — O f course, yes. He can be a lawyer or a CA or a CS or ICWA member.
A — What do they ask?
S — Firstly, all the parties present are asked to identify themselves. E verything is tape recorded. You have to speak into the mike.
A — O h! Everything is in English?
S — Y es. But sometimes, parties do not know English; or cannot speak in English. Then they can speak in Hindi or another language, which needs to be translated.
A — I see.
S — T hen, Complainant and Respondent are put on oath. The BOD and DC have the powers of a Civil Court. So they can administer oath. The complainant is asked to read out the charges. The Committee asks questions to the complainant to define the charges.
A — A nd what if the complainant is not there?
S — T hen, the Administration does that job.
A — T hen?
S — T hen the Respondent is asked whether he has understood the charges. After that, he is asked whether he pleads guilty or he denies the charges and would like to defend himself.
A — O bviously, he will try to defend himself. S — Sometimes, the guilt is so patent and self-evident that it is pointless to defend. The BOD or DC members appreciate if you candidly accept the guilt. That helps in softening the punishment.
A — T ell me the punishments again. You had told me once, but I forgot.
S — F or First Schedule item, the punishment is one or more of the following three: A reprimand or fine not exceeding Rs. 1 lakh and/or suspension of membership for a maximum period of 3 months.
A — A nd for Second Schedule offence?
S — A gain one or more of the three. A reprimand or maximum fine upto Rs. 5 lakh, and/or suspension of membership for any length of time.
A — O h! My God!
S — A rjun, now I am in a bit of a hurry. I will explain the further part when we meet next.
A — A s you please, Lord!
S — Tathaastu !
NOTE: This dialogue is based on the procedural rules contained in Chartered Accountants (Procedure of Investigations of Professional and other misconduct and conduct of cases) Rules, 2007 published in official Gazette of India dated February 28, 2007 (‘Enquiry Rules’).
