CA Exonerated: No Prosecution for Form 15CB Certificates Issued on Unknowingly Forged Documents

CA Exonerated: No Prosecution for Form 15CB Certificates Issued on Unknowingly Forged Documents

• Supreme Court Upholds Discharge

  • The Hon’ble Supreme Court, in the case of The Deputy Director V. Murali Krishna Chakrala, upheld the Madras High Court’s judgment discharging a Chartered Accountant from prosecution under the Prevention of Money Laundering Act (PMLA).

  • The Court confirmed that a CA cannot be treated as a conspirator solely for issuing Form 15CB certificates if they had no knowledge that the underlying documents were forged.

• Professional Duty vs. Criminal Conspiracy

  • The Petitioner, a Chartered Accountant, issued five Form 15CB certificates for foreign remittances at his client’s request.

  • The Enforcement Directorate alleged his involvement in a money laundering scheme worth Rs. 8 crores involving forged import documents.

  • The Court ruled that the CA performed his professional duty in accordance with Income Tax Rules and was not required to investigate the genuineness of the documents, which were falsified by others without his knowledge.

• Absence of Culpable Mental State (Mens Rea)

  • The ruling emphasized that the Petitioner neither participated in generating proceeds of crime nor had any fraudulent intent.

  • His role was limited to certification based on documents provided, and he actually assisted the prosecution by identifying the key accused, making him a potential witness rather than an accused.

• Protection for Bona Fide Professionals

  • This judgment reinforces that professional certifications given in good faith do not attract criminal liability.

  • It prevents the misuse of prosecution processes against professionals who act bona fide, distinguishing compliant professional conduct from active complicity in fraud.