The Institute of Chartered Accountants of India (ICAI) has penalized a Delhi-based Chartered Accountant, CA. Munish Mehta with the penalty of Rs. 10K for misguiding and blackmailing new auditors.
The case originated from a complaint filed by Shri Vinod K. Kala, Director of M/s VSS Clean Technologies Pvt. Ltd., against CA. Mehta. It was alleged that the CA was indulged in misguiding and creating a sense of fear, litigation etc. in the minds of the new auditors and threatening them from starting the audit of the Company for the period ended 31st March, 2015. Blackmailing the Company and soliciting illegitimate business by asking opportunity costs for five years in the event of not reappointing the Respondent Firm. Threatening Mr. Jami Hossain, Director of group Company through calls and various other professionals associated with the group Companies.
After a detailed inquiry, the ICAI’s Board of Discipline, in its findings dated February 11, 2021, concluded that Mehta was guilty of “Other Misconduct” under Item (2) of Part IV of the First Schedule of the Chartered Accountants Act, 1949.
However, before ICAI could pass its final order, Mehta approached the Delhi High Court. On March 17, 2021, the Court granted an interim stay on ICAI’s disciplinary findings. This stay remained in force until December 5, 2024, when the High Court vacated it and directed ICAI to issue a final order in accordance with its statutory powers.
During the final hearing on July 29, 2025, Mehta appeared before the Board through video conferencing. While he chose not to press further reliance on the High Court’s observations, he requested the Board to adopt a lenient approach, citing professional setbacks, economic losses, and health challenges.
After considering the facts, gravity of misconduct, and Mehta’s representation, the Board of Discipline, chaired by CA. Rajendra Kumar P (Presiding Officer) along with Ms. Dolly Chakrabarty (Government Nominee) and CA. Priti Savla (Member), imposed a monetary penalty of Rs. 10,000 on Mehta under Section 21A(3) of the Chartered Accountants Act, 1949.
