Hyderabad: YSRC leader V. Vijaysai Reddy received a major relief from the Telangana High Court in relation to disciplinary proceedings against him issued by Institute of Chartered Accountants of India (ICAI), which also proposed suspension of his membership.
Justice Surepalli Nanda allowed the petition filed by Vijaysai Reddy, who challenged the ICAI disciplinary committee’s prima facie opinion, which noted that Vijaysai Reddy was accused of alleged misconduct in his capacity as the financial advisor of Y.S. Jagan Mohan Reddy and his group companies and that in prima facie opinions he was, inter-alia, held prima-facie guilty of professional misconduct falling under the ambit of Clause(7) of Part I of the second schedule to the Chartered Accountants Act, 1949.
Allegations against Vijaysai were that he was assisting Jagan Mohan Reddy’s companies in obtaining manipulated valuation reports and raising funds thereon. It was noted that during that time he was holding an active certificate of practice with the ICAI. It held that Vijaysai’s services to the group were unbecoming of a chartered accountant. Based on the allegations, disciplinary proceedings were initiated against him by ICAI.
Challenging the same, Vijaysai Reddy approached the Telangana High Court, where Justice Nanda allowed Reddy’s petition on the grounds that the respondent institute had not submitted any material to prove that Vijaysai Reddy was involved in raising funds for Jagan Mohan Reddy’s companies.
