Andhra Pradesh HC Stays ICAI Notification Removing CA Accused of Fake GST Invoicing

Andhra Pradesh High Court Stays ICAI's Disciplinary Action Over Procedural Lapses

CA Akshay Jain, an associate member of ICAI practicing since December 15, 2016, filed a writ petition challenging disciplinary action taken by ICAI’s Disciplinary Committee. The complaint, filed on January 25, 2021, by the Director General of GST Intelligence, alleged professional misconduct.

The petitioner contended that the Disciplinary Committee failed to adhere to the due process outlined under the Chartered Accountants Act, 1949. Key arguments included the absence of an opportunity to cross-examine witnesses and claims of formalistic and arbitrary proceedings. On October 24, 2024, the committee found him guilty and imposed a five-year removal from ICAI’s membership register, effective January 3, 2025.

The respondent, ICAI, argued that the petitioner had an alternative statutory remedy under Section 22(G) of the Chartered Accountants Act to appeal the decision. The respondent’s counsel highlighted that the petitioner bypassed this mechanism and failed to substantiate any procedural malafide or violation of natural justice.

Court Observations and Decision Justice Venkateswarlu Nimmagadda noted the petitioner’s failure to exhaust the statutory appeal process. However, given the urgency, the court stayed the publication of the Gazette notification removing the petitioner’s name from ICAI’s register, effective January 3, 2025, until the statutory appeal was filed.

The court directed the petitioner to:

1. File an appeal before the Appellate Authority within four weeks.

2. Submit an interlocutory application seeking interim suspension of disciplinary proceedings.

The respondents were instructed to communicate the court’s decision to all concerned parties. The writ petition was disposed of, and the petitioner was advised to pursue the appellate mechanism. No costs were imposed on either party. Click Here for Order Copy Watch More about this Notification