The Calcutta High Court ruled that independent chartered accountants are liable under Section 628 of the Companies Act for certifying false statutory returns, establishing accountability.
Independent CA Liable under Section 628 of Companies Act for Certifying False E-forms
The Calcutta High Court has ruled that independent chartered accountants (CAs) can be held liable under Section 628 of the Companies Act for active complicity and mens rea in certifying false E-forms as part of statutory returns. This ruling emphasizes the responsibilities that CAs carry in maintaining the integrity of corporate disclosures.
The court's decision highlights that a lack of due diligence or verification from CAs regarding the authenticity of information disclosed could lead to legal repercussions under the Companies Act. It establishes a precedent for heightened accountability in the profession.
This ruling has significant implications for both chartered accountants and companies; it suggests that CAs must ensure thorough verification processes to shield themselves from liability. Legal advisors and corporate clients should take note of this ruling to adjust their compliance practices and mitigate risk.
Citations
- Independent CA Liability Case (2026) 3 Cal 130
