ICAI Eases Disciplinary Penalty For CA Guilty Of Professional Misconduct: Lifetime Ban Reduced to 10-Year Suspension
ICAI Eases Disciplinary Penalty For CA Guilty Of Professional Misconduct: Lifetime Ban Reduced to 10-Year Suspension
The Institute of Chartered Accountants of India (ICAI) has issued a formal notification confirming the removal of CA. Srinivas Talluri (Membership No. 029864) from the Register of Members for a period of 10 years which was reduced from lifetime ban, effective from June 3, 2025.
The disciplinary action stems from findings of professional misconduct.
CA. Talluri, a resident of Hyderabad, was found guilty of professional misconduct under Clauses (5), (6), (7), (8), and (9) of Part I of the Second Schedule to the Chartered Accountants Act, 1949. The Disciplinary Committee had earlier ordered his permanent removal from the register and imposed a fine of Rs. 5 lakh, payable within 30 days.
Talluri filed an appeal against the disciplinary order (01/ICAI/2014), but the Appellate Authority was non-functional at the time. Consequently, he sought relief from the Delhi High Court, which granted an interim stay on April 30, 2014.
Following a long legal process, the Appellate Authority reviewed the matter and issued an order on March 25, 2025, reducing the disciplinary penalty from permanent removal to a 10-year suspension.
In accordance with Section 20 of the Chartered Accountants Act and Regulation 18 of the Chartered Accountants Regulations, 1988, ICAI officially notified that CA. Srinivas Talluri will remain removed from its membership rolls for a decade starting from June 3, 2025.
The CA has challenged the challenged the order passed by the Disciplinary Committee, The Institute of Chartered Accountants of India and the findings of the Disciplinary Committee before the Appellate Authority. The Appellant has been found guilty of Professional Misconduct falling within the meaning of Clauses (5), (6), (7), (8) and (9) of Part I of the Second Schedule to the Chartered Accountants Act, 1949 as amended by the Chartered Accountants (Amendment) Act, 2006 with respect to his professional duties in the matter of audit of Satyam Computer Services Ltd. (“Satyam”), during the period 01.04.2007 to 30.09.2008. Vide order dated 21.10.2013 the Disciplinary Committee has ordered removal of the Appellant’s name from the Register of Members permanently and has imposed a fine of Rs. 5 Lakhs upon the Appellant.
The Appellate Authority comprising of Justice Talwant Singh (Chairperson), Rakesh Mohan (Member), Sandip Garg (Member) and Anil Satyanarayan Bhandari (Member) has observed that the CA has suffered enough penal consequences, including having suffered incarceration for a substantial period of time. The present proceedings have also been pending since 2014 , i.e., a period of over one decade, during the course of which the Appellant has suffered both professionally, financially and otherwise.
Thus, the Appellate Authority was of the view that the Appellant has suffered the consequences of his poor judgement and actions and now in the twilight years of his life, he ought to be allowed some relief from the rigors of the proceedings.
“We are of the view that the ends of justice would be met if the name of the Appellant be removed from the Register of Members for a period of 10 years in place of permanent removal. Thus, the findings and conclusions of the proceeding drawn by the Disciplinary Committee vide order dated 01.02.2013 are upheld but as far as punishment is concerned, the appeal is partly allowed and the punishment order dated 21.10.2013 passed by the Disciplinary Committee, The Institute of Chartered Accountants of India is hereby modified to the extent that the fine of Rs. 5.00 Lakhs is upheld, and his name shall be removed from the Register of Members for a period of 10 years from the date of publication of removal Notification in the Gazette of India by the Respondent,” the Appellate Authority said.
Mariya is the Senior Editor at JurisHour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.
