By: V L Varadarajan
Advocate and former Statutory Auditor ISKCON Bangalore.
Bangalore, Tuesday, Aug 9th 2011.
I am CA V.L.Varadarajan (VLV) (now Advocate), former statutory auditor of ISKCON Bangalore.
I demand ICAI and Government of India action on Disciplinary Committee (DC) comprising 1. CA. Amarjit Chopra, FCA, New Delhi; 2. CA. G. Ramaswamy, FCA Coimbatore 3. CA. Atul Chunilal Bheda, FCA, Mumbai 4. CA. K. Raghu, FCA, Bangalore whose actions show they bent rules and went out of way to show a non-existent misconduct and made falsification of report of untruth, under Prevention of Corruption Act and for CBI enquiry,
I also ask ICAI to probe into illegal & premature leaking of Disciplinary Committee report to Dayaram Das by Ms. Vandana Nagpal, Disciplinary Director of ICAI and punish guilty.
I also ask ICAI to take disciplinary action under section 21 of CA Act, 1949 on above 4 Disciplinary Committee members.
I appeal to ICAI to issue clarificatory statement of media report that Dayaram Das is false and I have not been held guilty of fudging accounts or backdating accounts or abetting fraudulent manipulation by Madhu Pandit Dasa in creating accounts, as ICAI is not empowered to investigate into crimes under IPC, that too for only part of crime viz. Probing abetment without probing fraud by non-CA member being improbable, it beyond ICAI jurisdiction and powers. Thus ICAI must clear wrongful criminal defamation of libel and slander that occurred owing to dereliction of duty of officials of ICAI. Apologising for the same is left to Council’s magnanimity and fairness. ICAI must admit there is pointer of mens rea of 4 Disciplinary Committee members, by their improper & unjust conduct during enquiry on complaint against me which points in the direction of abetment to Mumbai ISKCON’s cause by serious departure from standards including non-verification of originals thus permitting a fraud of forgery & fabrication by complainant, 3 page annexure of 1990-91 audited accounts, to get official & legal approval (Annexure 1). I demand that ICAI must quash the Disciplinary Committee report dt.10.2.2011 and start De Novo enquiry by Council.
I also demand, in interest of justice, to send a 3 member fact finding team to check at random basic documents with ISKCON Bangalore for any 3 years out of 12 years in question and confirm and report whether any of them show it is document belonging to branch of ISKCON Mumbai, if not issue report confirming accounts are that of ISKCON Bangalore society.
It may be recalled that I was in news last month when Dayaram Das of ISKCON Mumbai said Institute of Chartered Accountants of India (ICAI) held him guilty. Today I clarify that it he lied through his teeth. Report dt.10.2.2011 is only a finding of Disciplinary Committee (Disciplinary Committee) not the decision of ICAI; Council could reject this prima facie or on my representation. Even if Council makes final decision I am guilty it is Hon’ble HC of Karnataka who can hold me guilty, till then findings have no value. I now show that Dayaram Das was not authorised to receive this report as per law (regulation 16(2) of CA Act). It has been leaked by Disciplinary Director of ICAI to help ISKCON Mumbai’s strategy of maligning campaign as part of criminal conspiracy and use it before SC, defiance of Karnataka HC order in WP26700/2005.
I further provide proof that Disciplinary Committee report is full of lies and concealment of facts to aid ISKCON Mumbai’s false claim on ISKCON Bangalore Society’s property. 4 counts on which Disciplinary Committee held me guilty and all are wrong on fact and law:
1. First charge that on 25.1.2005 without having a firm name VLV & Associates VLV issued certificate.
This is proved wrong as per ICAI records confirmed by letters of ICAI dt.8.9.2005 & 22.7.2011, where it states from 24.12.2004 till 13.9.2010 VLV & Associates firm existed. This clearly proves that Disciplinary Committee had made report to aid and abet ISKCON Mumbai stating a lie (Annexure 2).
2. Secondly, he was held guilty of other misconduct for using VLV & Co. name without permission of ICAI, I show approval letter from ICAI dt.29.10.88 which confirms VLV & Co. name is approved since then. As per regulation 190(9) of CA Regulations 1988 no one can practice in a name not approved. This approval was not withdrawn and no provision to withdraw is available in law. Institute letter dt.5.5.2005 confirms from 1988 to 22.12.2003, I was in practice, so using approved name is not a professional misconduct. Disciplinary Committee not finding regulation 190 (Annexure 3) violated, just to help ISKCON Mumbai has told this as other misconduct, whereas any misconduct of name usage will be professional misconduct under clause (1) of Part II of Second Schedule as per Sec 21 & 22 of CA Act, 1949.
3. Third charge – Disciplinary Committee report Para 24.5 says both accounts of 1990-91 were given to ISKCON Bangalore society by VLV and that is misconduct. ISKCON Mumbai case was that VLV issued report dt.4.10.91 (Annexure 4) accounts to them and modified it and issued to Bangalore society in report dated. 29.10.91. Hence, Disciplinary Committee must have reported ISKCON Mumbai did not prove its case that they were my clients and 90-91 accounts were given to them. Instead of reporting it so, Disciplinary Committee to abet Dayaram Das’s cause held me guilty of misconduct for issuing 2 accounts to same society for same year.
It is clarified that Issuing 2 accounts to same client for same year can never be misconduct. ICAI has issued 3 guidance notes on how to issue such revised accounts & reports. How can ICAI approved process result in misconduct.
4. Interestingly, once Mumbai case failed, I can’t be asked to explain on last charge of 12 year filing, as it will lead to a misconduct under clause (1) of part I of second schedule i.e. Auditor is guilty of misconduct if he reveals client information to strangers. This matter must have been dropped on this count itself. It is interesting to note that ISKCON Mumbai has filed returns for 1984 to 1998 one shot in 1998 and has not filed returns from 1971 to 1983.
However, answer to this allegation is that it is not my duty to file returns with Registrar. Hence there is no misconduct. Also, since 90-91 accounts are not that of Mumbai’s, further report can’t be that of Mumbai’s, as without his audit report of 90-91, Mumbai has no opening balance. Also first balance sheet (Ex.D9 of OS7934/2001) claimed by ISKCON Mumbai as theirs has been proved in that case that it is given to Bangalore society by CA M.R.Ramakrishna in the court. This evidence is before ICAI under review petition and before Disciplinary Committee under IA-1, both filed on 3.8.2009, 15 months prior to enquiry, but Disciplinary Committee ignores this binding fact to aid ISKCON Mumbai’s conspiracy.
LIES by ISKCON Mumbai.
Obvious from above that claim of Dayaram Das that ICAI investigated backdated signing is not based on the report.
ISKCON Mumbai’s claim on accounts are false has been already proved. Further, Mumbai claimed CA Pradeep’s report their branch report. But his report and VLV report do not have words, ‘branch’ ‘ISKCON Mumbai’, but they clearly show that books verified were that of society and not a branch. He showed ICAI has given branch audit report format (in publication Bank Audit). Both VLV’s & CA Pradeep’s reports are not in that format. The same fact finds place in Bangalore City Civil Court judgement and these findings are not reversed or contradicted in High Court judgement, so they are valid as of date.
Further, he showed when Mumbai says CA Pradeep audited for April 1988-march 89, accounts shows it was made for 1.7.87 to 31.3.89. This proved Mumbai is falsely claiming ISKCON Bangalore society accounts as their branch account without even knowing facts.
There are series of lies by Dayaram Das in his press release and we confirm seeing what he showed:
1. Institute conducted investigation of fraudulent back dating of accounts to abet Madhu Pandit Dasa to usurp Mumbai property, is not correct as ICAI cannot probe it, but only criminal court and police. So far no such criminal case has been filed
2. HC report did not hold VLV guilty of manipulating accounts to help Madhu Pandit Dasa, and HC was handling appeal of civil matter and not a criminal case to hold him guilty also he was not party before HC so it cannot condemn him behind his back.
3. Disciplinary Committee report did not hold VLV guilty of professional misconduct for signing fraudulent back dated Account statements of the defunct society, as no such words are there in the report.
Mumbai ISKCON had completely lied about finding of Disciplinary Committee to suit its need and to malign VLV to settle scores. VLV complained about ISKCON Mumbai’s encroachment illegally of Kacharakkanahalli Lake violating SC order, as also for his refusal to falsely testify against Sri Madhu Pandit Das and winning income tax cases for ISKCON Bangalore. ISKCON Mumbai dragged name of Sri. Madhu Pandit Das when his name does not appear in report even once only to malign him for personal vendetta.
Disciplinary Committee of ICAI had also been unjust in holding enquiry:
- Sensitive serious case was finished in 1 day hearing in absence of VLV;
- Originals were not asked or seen.
- Fatal error of IA-1 and IA-2 not dealt with makes enquiry and report to be quashed.
- Disciplinary Committee permitted ISKCON Mumbai to file 709 pages during hearing. Enquiry must have been adjourned for this itself to another date at least a month away. But despite plea from my lawyer that I am not well and if IA is not taken up postpone the enquiry was rejected. It did not postpone even to next day. Disciplinary Committee too cannot humanly read all 709 pages in few minutes. It is a mystery how they completed hearing without reading papers.
- Report of Disciplinary Committee took direction from DIT (E) Mumbai and finding in his order is basis of finding of 12 year balance sheet is from branch books. The finding itself is vague and ambiguous with usage of words appears to have been. In Para 24.3 Disciplinary Committee states it does not rely on DIT (E) order and in 24.6 quotes there is one DIT (E) order which states they are replica of ISKCON Mumbai Bangalore branch balance sheet. So it is not a finding at all. That too this order was filed during hearing on 10.6.2010 without reading it, Disciplinary Committee followed that order as basis. Mumbai concealed information that such order is already challenged before HC of Karnataka and appeal is pending. Further legally that order is not binding on ISKCON Bangalore or me as we were not party to that order and matter before DIT is not same before Disciplinary Committee. There being no relevant facts they can’t use that finding as basis. Disciplinary Committee refuses to accept Civil Court findings showing contempt of court, but follows direction of DIT (E) Mumbai, this shows Disciplinary Committee bent law to aide & abet Mumbai ISKCON, victimising an innocent CA, me, in the process. Findings include vague statements and mere deliberations, indicating Disciplinary Committee violated all norms of judicial process & judicious decision making, violated natural justice only to aid ISKCON Mumbai. They read 709 pages in no time, but did not even see for 15 months, 14 pages IA filed by VLV. In minutes of hearing Disciplinary Committee said it is recorded that VLV’s advocate came to file IAs and he did not ask for adjournment. But Disciplinary Committee concealed fact IAs were filed by VLV & advocate came to argue IAs, this in their report and lied saying advocate of VLV came only to ask for adjournment to suit Mumbai’s cause. IA not considered itself makes Disciplinary Committee report bad in law as per SC decision. VLV had filed before Disciplinary Committee CA MR Ramakrishna’s evidence in Nov 2008 & Civil Court judgement along with IA-1. But in its report, DISCIPLINARY COMMITTEE concealed IA, but says case is pending before civil court. We have to await ICAI reply to these charges and demands.