JUDGMENT

SWARANA KANTA SHARMA, J.

Signature Not Verified CHAT A. REF. 2/2019 Page 1 of 35 Digitally Signed

1. This reference has been made under Section 21(5) of the Chartered Accountants Act, 1949 (prior to the Amendment Act, 2006) [hereafter „the Act‟] by which the Council of Institute of Chartered Accountants of India [hereafter „the Council‟] has forwarded the case to this Court after finding the respondent no. 1, Chartered Accountant (CA) Sh. Subhajit Sahoo, who is the member of Institute of Chartered Accountants of India [hereafter „ICAI‟], guilty of professional misconduct falling within the meaning of clause (7) of Part-1 of Second Schedule to the Act, and has recommended the removal of his name from the Register of Members of the ICAI for a period of one year.

FACTUAL BACKGROUND

2. The present reference emanates from a complaint filed on 29.11.2005 by the Additional Development Commissioner (Handicrafts), Government of India, Ministry of Textiles, R.K. Puram, New Delhi [hereafter „the complainant‟] against the respondent no. 1.

3. The complainant alleged that it had sanctioned a loan of ₹11,18,000/- to one M/s Maokot Handloom & Handicrafts Cooperative Society Ltd., Churachandpu