The Institute of Chartered Accountants of India (ICAI) has taken disciplinary action against a Delhi-based chartered accountant in connection with a multi-crore bank loan fraud. The institute’s disciplinary committee has suspended chartered accountant Parminder Singh Oberoi for one year and also imposed a fine of ₹1 lakh.
The matter came to light after a complaint was filed by the Central Bureau of Investigation alleging that Oberoi had audited and certified forged financial documents and balance sheets, which were later used to secure a bank loan worth crores of rupees.
Bank loan obtained using fabricated financial documents
According to the investigation, the accused chartered accountant audited and certified financial statements of White Metals for the financial years 2009–10 to 2011–12. He also prepared and certified provisional balance sheets for White Metals and White Tiger Steels Pvt. Ltd.
Based on these documents, White Tiger Steels Pvt. Ltd. allegedly managed to obtain a ₹10 crore cash credit limit from Punjab National Bank. Investigators later discovered that several financial figures mentioned in the certified documents were false and fabricated.
Investigation reveals shocking irregularities
During the probe, it emerged that White Metals was not engaged in any real business activity. The company’s VAT/TIN registration had already been cancelled retrospectively from March 31, 2007.
Despite this, VAT returns and turnover figures were reportedly certified for the company. Investigators said that the financial data certified in the documents was entirely based on fabricated information.
Violation of professional conduct rules
While examining the matter, the disciplinary committee reviewed whether the chartered accountant had violated professional conduct rules under the Chartered Accountants Act, 1949.
The inquiry found that the accountant failed to exercise proper due diligence while certifying financial statements and did not independently verify the documents and data provided.
The committee also noted that the respondent did not follow established auditing standards and relied solely on management representations instead of conducting independent verification.
Failure to provide supporting documents
During the disciplinary proceedings, the chartered accountant was given several opportunities to submit supporting documents such as bank statements, VAT returns, or audit working papers in his defence.
However, according to the committee, he failed to produce any documentary evidence to support the financial figures he had certified.
The report also noted that he was given multiple hearing dates but did not appear for the final hearing, despite several adjournments granted earlier.
Committee’s verdict
In its order, the disciplinary committee observed that the accountant’s negligence and violation of professional standards enabled the accused parties to defraud the bank of crores of rupees.
The committee therefore found him guilty of professional misconduct and ordered that his name be removed from the register of members for one year. Along with the suspension, a monetary penalty of ₹1,00,000 was imposed.
Experts say the decision highlights the importance of accountability within professional institutions. They emphasize that chartered accountants play a crucial role in verifying financial documents, and any lapse in due diligence can facilitate major financial crimes.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
