Businessmen and individuals with significant capital often rely on Chartered Accountants (CAs) to manage their finances and handle taxation. In doing so, they share highly sensitive personal and financial information with their CA, trusting that it will be handled responsibly. But what happens when that trust is betrayed?
Recently, a doctor (let’s call him Shikhar) reached out to us to report a case where his CA did some financial transaction on his name.
Shikhar: Sir, I have a Demat account, but I rarely use it, so I don’t monitor it closely. However, I recently discovered that my CA had been using my account for trading and investments without my knowledge.
ADB: That’s serious, what exactly happened.
Shikhar: So, to keep a check of my account I have shared all the details with my CA, but he misused it and took a loan of ₹20 crores from the bank.
ADB: What, and the bank didn’t contact you?
Shikhar: No sir.
ADB: That’s the matter of concern. What did he do with that capital?
Shikhar: He added that amount in my trading account and traded using that capital. Luckily he earned a profit of ₹1.2 crores on it. Later, he repaid the loan amount.
But my concern is how banks and stock brokers allowed to make such big transactions without my authorization.
ADB: Yes, you are correct. Did you talk to your CA, regarding this?
Shikhar: Yes, I did but he said that I have no proof against him and can’t do anything against him.
ADB: No, that is not correct. You can. However, cases like these are complex and take time to resolve. You have the right to file a complaint against him for fraudulent activities.. Misusing his license and position like this is a serious offense.”
Shikhar: Yes sir, there are chances that I am not the first one with whom he did this. I assume that I was lucky enough that he made profit over the loan amount otherwise I get scared just by thinking of the consequences.
ADB: Yes, you are right and can take legal help and reach out to the broker to file a complaint against him. They can investigate further and ensure this doesn’t happen to anyone else.
Shikhar: Sure sir, Thanks!
Incidents like these make it even more important to stay vigilant even when dealing with trusted professionals. Make sure you monitor your accounts regularly and ensure that you are aware of all the transactions happening in your account.
In case you suspect any misuse of your personal information, don’t hesitate to take legal action. Your financial security is paramount, and you must stay active & alert of the activities happening in your account.
