• Forgery by company auditor

Auditor used scanned signature to file forged ADT-1 documents to be appointed at Auditor for 3 years with all scanned signature forged documents and by misuse of Digital Signature. Auditor also filed resignation of the Director in December 2014 after she died in September 2013. This Auditor resigned on June 28, 2016 from his forged Auditor position without doing any Audit work from 2014 onward. Registrar of companies and Ministry of Corporate Affairs were informed in writing after several Police complaint against the Auditor. WP was filed in the high court but nothing has come out of it in more six months passed. Evidences are all on the Ministry of Corporate Affairs MCA website.
Asked 3 months ago in Criminal Law from Gwalior, Madhya Pradesh
Religion: Hindu
1) you have already filed police complaint against the auditor for forgery 

2) if no FIR is registered you can file private complaint under section 156(3) of Cr Pc to direct police to investigate and submit report 

3) also lodge complaint with the institute of chartered accountants the regulatory body for chartered accountants in india for taking action against the auditor
Ajay Sethi
Advocate, Mumbai
23383 Answers
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Hi
 The company can file a FIR of forgery , cheating and fraud  either initiate with the police by filing an FIR or approach a criminal court to file a private complaint after  considering the merits  and present status of the  pending WP in the High Court .
The all people involved have to be booked and tried  to bring the truth.
The auditor is liable for the loss and the damages has to be recovered from him  and his associates. For this  a criminal case and a civil suit can be initiated.
If your company has filed WP against the auditor in HC , try to speed up the matter, it will take time in High Court , 6 months is too early for a result.
Thresiamma G. Mathew
Advocate, Mumbai
1316 Answers
85 Consultations
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1) it is better you pay the fees of Rs 2500 for filing Complaint against auditor before the regulatory authority 

2) you can do Google search of auditors in yiur city . Contact a young auditor who has just started his practise and has some experience of audit work 

3) if fraud has taken place in Gwalior then case has to be filed in Gealior and not Mumbai 
Ajay Sethi
Advocate, Mumbai
23383 Answers
1229 Consultations
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Thanks for your appreciation
Ajay Sethi
Advocate, Mumbai
23383 Answers
1229 Consultations
5.0 on 5.0
1. Why was the WP filed? Filing a WP was misconceived. The aggrieved parties ought to have filed a private criminal complaint in the court of the judicial magistrate upon which the court could summon and try the accused itself. You are wasting your time by writing to MCA. File the criminal complaint in the court where no association will work for them.

2. A civil suit for damages can also be filed against the auditor and company secretaries to recover the losses and also seek punitive damages from him.
Ashish Davessar
Advocate, Jaipur
18259 Answers
450 Consultations
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 1. In so far as the criminal case of forgery and cheating is concerned it can be filed only in Gwalior as the crime has been committed there whereas the  civil suit for damages may be filed in Mumbai.  

2. File a written complaint against the auditor to the Institute of Chartered Accountants of India which can bring the auditor to the book.

3. If you are unable to find a local auditor who is willing to do the work then engage an outstation auditor.Somebody will surely be ready to take up the work.
Ashish Davessar
Advocate, Jaipur
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450 Consultations
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This Auditor resigned on June 28, 2016 from his forged Auditor position without doing any Audit work from 2014 onward. Registrar of companies and Ministry of Corporate Affairs were informed in writing after several Police complaint against the Auditor. WP was filed in the high court but nothing has come out of it in more six months passed. Evidences are all on the Ministry of Corporate Affairs MCA website.

What is your question by posting the above details?
If the case is pending before court, you have to follow it up through court only. 
T Kalaiselvan
Advocate, Vellore
14161 Answers
128 Consultations
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Company has suffered financial loss in the last two years on Rs.100 Lacs invested in the company as no audit work was done by the fraudulent auditor who appointed himself by document forgery now resigned after two years and has filed many falls documents in between. Fake Auditor also involved two unknown company secretaries who did not consult me but filed many forged and fake documents on ROC/MCA website including resignation of dead Director as stated above. What kind of damages can be filed?

If the forgery is evidently proved then a cheating and breach of trust complaint can be file agaisnt him
T Kalaiselvan
Advocate, Vellore
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128 Consultations
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Auditor and his family members are involved in crime and also 2 company secretaries who filed documents without consulting me and without taking my permission in writing are directly involved as they filed the falls documents using my Digital Signature and on Government MCA website

If the forgery and fraud has com to the knowledge, besides criminal complaint, yo can also send a legal notice pointing out the discrimination and can sue him for the damages you suffered if he is not responding or complying with the demand made. 







 I am a retired nuclear scientist and very special one and my delay in work is affecting National interest also. Question is how to let the company operate out of Mafia like structure of Auditors and some wasted interest in Government offices?

Not all auditors are of this type and also there is no dearth for good and genuine auditors, you may look for auditor elsewhere instead of looking for one within the same place. 
T Kalaiselvan
Advocate, Vellore
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128 Consultations
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As suggested, the legal cases can be filed in Gwalior so I will hire a good team of Lawyers to take up on all fronts. I think many of them will be interested as all evidences are loaded by the criminals themselves on MCA website. They simply can't get away with it..


You may proceed s suggested or judiciously as per the prevailing circumstances without making simple things into complicated ones. 
T Kalaiselvan
Advocate, Vellore
14161 Answers
128 Consultations
5.0 on 5.0

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