The Ministry of Corporate Affairs (MCA) has penalised a Chartered Accountant for non-compliance with auditor resignation protocols as mandated under the Companies Act, 2013.
The action was initiated against Shri Vijay Bora, a Chartered Accountant affiliated with M/s Doogar & Associates, for failing to adhere to Section 140(2) of the Act.
According to the Registrar of Companies (ROC), West Bengal, CA Vijay Bora did not file the mandated e-form ADT-3 following his resignation from his audit assignment, as required under Section 140(2). This provision mandates that any resigning auditor must submit a statement within 30 days of resignation to both the concerned company and the ROC, detailing the reasons for stepping down.
Despite being served with an adjudication notice, no response was submitted by the auditor. Consequently, the ROC imposed a penalty of ₹50,000. Multiple hearings were scheduled to address the matter, but the auditor’s authorised representative repeatedly sought adjournments. On May 5, 2025, the hearing finally proceeded, but no substantial grounds were provided to contest or reduce the penalty.
As per the order, the penalty of ₹50,000 is to be paid personally by the auditor within a 90-day period. Failure to comply with the payment requirement may trigger further legal action under Section 454(8)(ii) of the Companies Act, 2013.
This case underscores the importance of statutory compliance by professionals under the Companies Act and serves as a reminder that procedural lapses, particularly in regulatory filings, can attract monetary penalties and legal consequences.
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