COUNCIL OF INSTITUTE OF CHARTERED ACCOUNTANTS vs SHRI KISHAN GUPTA AND ANR.

Judgment text excerpt

* IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment Reserved on: 04.12.2025 Judgment delivered on: 23.12.2025 Judgment uploaded on: As per Digital Signature~ + CHAT.A.REF 2/2018 COUNCIL OF INSTITUTE OF CHARTERED ACCOUNTANTS .....Petitioner versus SHRI KISHAN GUPTA AND ANR. .....Respondents Advocates who appeared in this case For the Petitioner : Mr. Deepin Deepak Sahni, Advocate. For the Respondents : Mr. Vijendra Singh Mahndiyam, CGSC for R2. CORAM: HON'BLE MR. JUSTICE V. KAMESWAR RAO HON'BLE MR. JUSTICE VINOD KUMAR JUDGMENT V. KAMESWAR RAO, J. 1. This reference has been made by the Council of Institute of Chartered Accountants (“CICA”) seeking orders under Section 21(5) of the Chartered Accountants Act, 1949 (pre-amended) (“Act”) for removal of the name of respondent no. 1 namely Shri Kishan Gupta from the Register of Members for a period of one year. Signature Not Verified Signed By:PRADEEP CHAT.A.REF 2/2018 Page 1 of 20 SHARMA Signing Date:23.12.2025 16:09:48 2. The Chairman of the Securities and Exchange Board of India (“SEBI”) vide order dated 12.12.2002 passed directions against the respondent no. 1 under Section 11B of the Securities and Exchange Board of India Act, 1992 read with Regulation of the SEBI (Prohibition of Fraudulent & Unfair Trade Practices relating to Securities Market) Regulations, 1995. As per the petitioner, the allegations made by the SEBI against respondent no. 1 are broadly as under:- (a) The irregular allotment of 1,17,200 shares of Bharthari Financial Services Limited (“BFSL”) involving irregular subscription of 27,00,000 shares with an application money of Rs. 2.70 crores by way of stock invests issued by Sangli Bank, Karol Bagh, Delhi. (b) The irregular allotment of 57,600 shares of BFSL involving irregular subscription of 14,40,000 sha