unqualified persons are using false registration numbers and issuing fake
certificates by pretending to be Chartered Accountants. Ninety four
cases of fake certificates since April, 2006 have come to the notice of the
Institute of Chartered Accountants of India. These include issue of false
certificates with fake name, registration number (membership number) address
etc.
The details are given below :
Description
01.04.2006 to 31.03.2007
01.04.2007 to 31.03.2008
01.04.2008 to 31.03.2009
01.04.2009 to 22.07.2009
Total
Cases under investigation with the Police
6
8
4
1
19
Cases under examination with the ICAI to enable to be referred to the Police
15
19
31
10
75
Total
21
27
35
11
94
Giving this information in the Lok Sabha in a written reply
Shri Salman Khurshid, Minister for Corporate Affairs, said that ICAI is
empowered under Chartered Accountants Act, 1949 to deal with such issues.
Recognizing the fact that such instances are on the increase, section 26 of
the said Act was amended in 2006, by the Chartered Accountants (Amendment)
Act, 2006, whereby the offence has been made punishable on the first
conviction with a fine of not less than Rs.5,000/- but which may extend to
Rs.1 lakh and in the event of second or subsequent conviction, with
imprisonment for a term, which may extend to one year or with fine not less
than Rs.10,000/- but which may extend to Rs.2 lakhs or with both.