CA Suspended for One Year by ICAI in Multi-Crore Bank Fraud Matter

CA Suspended for One Year by ICAI in Multi-Crore Bank Fraud Matter

A complaint was filed by the Central Bureau of Investigation (CBI), New Delhi, against CA Parminder Singh Oberoi, proprietor of M/s P S Oberoi & Associates, New Delhi. The CBI alleged that the Respondent audited and certified false/forged financial statements for M/s White Metals (for FYs 2009-10 to 2011-12) and provisional balance sheets for both M/s White Metals and M/s White Tiger Steels Pvt. Ltd.

Based on these forged documents, M/s White Tiger Steels Pvt. Ltd. (which took over M/s White Metals shortly after incorporation) fraudulently secured a cash credit limit of Rs. 10 Crores from Punjab National Bank (PNB), Darya Ganj. The CBI investigation revealed that M/s White Metals was not conducting any business and its VAT/TIN number had been cancelled retrospectively from 31.03.2007, making the VAT returns and turnover figures certified by the CA completely fabricated.

Central Issue: Whether the Respondent is guilty of professional misconduct under Clauses (5), (6), (7), and (8) of Part I of the Second Schedule to the Chartered Accountants Act, 1949, for failing to exercise due diligence, failing to obtain sufficient information, and certifying materially misstated financial statements that facilitated a bank fraud.

Tribunal’s Decision: The Disciplinary Committee found CA Parminder Singh Oberoi guilty of professional misconduct on all counts. The Committee noted that despite multiple opportunities and directives, the respondent failed to produce any supporting documentary evidence (such as bank statements, valid VAT returns, or audit working papers) to justify the massive turnover figures he certified. He merely relied on management representations without independent verification, violating auditing standards (including SRS-4410 regarding compilation engagements).

The Committee observed that his actions allowed the accused to defraud the bank of crores of rupees. Furthermore, the Respondent failed to appear for the final hearing despite 13 previous adjournments granted at his request or due to his absence. Thus, the Committee ordered the removal of his name from the Register of Members for one (1) year and imposed a fine of Rs. 1,00,000/- (Rupees One Lakh)

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