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Judgment
Mis-reference has been made u/s 21(5) of the Chartered Accountants Act, 1949.
A firm of auditors by the name of M/s. Kaul Associates was required to conduct a statutory audit in respect of the affairs of respondent No. 3 (Delhi Prashasan Adhikari Co-operative Group Housing Society) by the Registrar, Co-operative Societies, Government of NCT of Delhi, New Delhi. Respondent No. 1 (Shri Rajesh Rastogi) was appointed as the auditor by the firm.
It appears that there were some complaints in respect of the audit which led respondent No. 3 to make a complaint against Shri Rajesh Rastogi to the Institute of Chartered Accountants. The Institute looked into the matter and conducted an enquiry in which Shri Rajesh Rastogi admitted the allegation made against him thereby admitting the violation of Part- 1 of Schedule-2 to the Act.
After hearing Shri Rajesh Rastogi, the Institute has recommended reprimanding him and the matter has come to us for confirmation.
We had noticed that in its complaint, respondent No. 3 had requested that exemplary punishment should be awarded to Shri Rajesh Rastogi and he should also be asked to reimburse the audit fee and the expenditure incurred by the said respondent.
In view of the representation made by the complainant, we issued notice to it and thereafter imp leaded it as respondent No. 3 by an order dated 5-12-2006.
The Society has put in appearance before us and says that it would like to reiterate its claim for refund of the audit fees and expenses incurred. We find from the complaint that the amount which the Society seeks a refund is Rs. 5,715.
Shri Rajesh Rastogi is present in court and states that he is prepared to refund this amount to the Society and will do so within a week. Looking into the facts of the case that Shri Rajesh Rastogi as pleaded guilty to the allegations made against him, we confirm the punishment imposed upon him by the Institute, that is, reprimanding him and further direct that Shri Rajesh Rastogi will return the amount of Rs. 6,000 (rounded off) to respondent No. 3 within a week.
List for compliance in respect of the payment on 3rd April, 2007 on which date Shri Rajesh Rastogi should also be present in Court.