Why Every CA Must File Form ADT-3: Insights from the Latest MCA Crackdown


	Home Team Services Value Added Tax (VAT) Income Tax Corporate Governance Service Tax Corporate Services Corporate Finance Services for Non-Residents Accounting Services Payroll Benefits of Outsourcing TDS Audit Accounting Services Website Virtual Design2 Site3 Site Site1 Design Design1 Calculators Calculate Net Profit Calculate Net Worth Effective Capital HRA NSC EMI Auto Loan Calculator Home Loan Calculator Get No. Of Installment RERA Calculator Developers Calculator Home Buyer Delay Interest Home Buyer Refund SIP CALCULATOR Lumpsum CALCULATOR Bulletins RBI SEBI Notification Circular Income Tax Service Tax Central Sales Tax Excise Matters Customs Company Law Labour Laws FEMA The LLP Act 2008 Accounting Standard (INDAS) Others GST VAT Delhi VAT Maharastra VAT Gujarat VAT Telangana VAT Tamil Nadu VAT IGST UTGST Compensation Cess IBC Regulation Utilities Income Tax Bill 2025 IT Act Vs IT Bill 2025 IT Bill 2025 faqs income tax bill faqs income tax bill general Rates of TDS TDS Rates for N.R.I us 195 Rates of Income Tax Depreciation Rates Companies Act Depreciation Rates Income Tax Act ROC Filing Fees (Cos Act, 2013) ROC Fee Structure (Cos Act, 2013) Cost Inflation Index IFSC Codes MICR Codes Rates of NSC Interest Gold and Silver Rates Rates of Stamp Duty LLP Fees National Industries Classification HSN Rate List Deduction u/s 80TTA Vs 80TTB Links Quick Links Important Links GST/VAT Links Ease Of Doing Business Acts Direct Tax Income Tax Act Wealth Tax Act Income Declaration Scheme 2016 Direct Tax Vivad Se Vishwas Scheme Indirect Tax Service Tax(Finance Act, 1994) Central Sales Tax Act, 1956 The Central Excise Act, 1944 Customs Act, 1962 Entry Tax Act Corporate Laws Companies Act, 2013 Companies Act, 1956 LLP ACT SEBI Act, 1992 Company Secretaries Act, 1980 VAT Laws Delhi Value Added Tax Act, 2004 MVAT Act, 2002 West Bengal VAT Act, 2003 Tamilnadu VAT ACT, 2006 Karnataka Value Added Tax Act, 2003 Gujarat Value Added Tax Act, 2003 UP VAT Act, 2008 Rajasthan Value Added Tax Act, 2003 Punjab Value Added Tax Act Haryana Value Added Tax Act Telangana VAT Act 2005 Andhra Pradesh VAT Act, 2005 Bihar Value Added Tax Act, 2005 Other Statutes ESI Act, 1948 PF Act, 1952 Profession Tax Act The Indian Partnership Act, 1932 Societies Registration Act, 1860 Competition Act, 2002 Reserve Bank of India Act, 1934 MRTP Act, 1969 Equalisation Levy Act, 2016 Right To Information Act, 2005 FEMA, 1999 Maharashtra RERA RERA, 2016 Insolvency & Bankruptcy Code, 2016 Benami Property Act 1988 GST Laws IGST Act , 2017 Rules Direct Tax Rules Income Tax Rules Wealth Tax Rules 1957 Income Declaration Scheme Rules 2016 Indirect Tax Rules GST Valuation Rules , 2016 Service Tax Rules CST (Delhi) Rules, 2005 CST (Maharashtra) Rules Customs Valuation Rules Cenvat Credit Rules, 2017 Entry Tax Rules Corporate Laws Rules Companies Rules, 2014 LLP Rules, 2009 LLP Winding up Rules, 2012 Cos Unpaid Dividend Rules, 1978 VAT Laws Rules Delhi VAT Rules, 2005 Maharashtra VAT Rules, 2005 West Bengal VAT Rules, 2005 Tamilnadu VAT Rules, 2007 Karnataka VAT Rules, 2005 Gujarat VAT Rules, 2006 Uttar Pradesh VAT Rules, 2008 Rajasthan VAT Rules, 2006 Punjab VAT Rules Haryana VAT Rules, 2003 Telangana VAT Rules 2005 Andhra Pradesh VAT Rules, 2005 Bihar Value Added Tax Rules, 2005 Other Statutes Profession Tax Rules NBFC Deposits Directions, 1998 NBFC & Misc NBC (Advt) Rules, 1977 NBFC Auditor Report Directions, 2008 Delhi Labour Welfare Fund Rules, 1997 Cost records and audit Rules, 2014 Baggage Rules, 2016 Equalisation Levy Rules, 2016 NCLT And NCLAT Rules Insolvency & Bankruptcy Rules Benami Property Rules, 2016 GST Rules CGST Rules, 2017 IGST Rules 2017 Forms Income Tax Forms ROC Forms (Cos Act, 2013) ROC Forms (Cos Act, 1956) Income Declaration Forms Wealth Tax Forms Service Tax Forms Companies Unpaid Dividend Forms NBFCs Forms LLP Winding up FEMA Forms LLP Forms CGST Forms GST Forms Accounts and Records Advance Ruling Appeals and Revision Assessment and Audit Composition Demands and Recovery Input Tax Credit Inspection, Search and Seizure Offences and Penalties Payment of Tax Refund Registration Returns Transitional Provisions Value of Supply Knowledge Bank Calculators Calculate Net Profit Calculate Net Worth Effective Capital HRA NSC EMI Auto Loan Calculator Home Loan Calculator Get No. Of Installment RERA Calculator Developers Calculator Home Buyer Delay Interest Home Buyer Refund SIP CALCULATOR Lumpsum CALCULATOR Bulletins RBI SEBI Notification Circular Income Tax Service Tax Central Sales Tax Excise Matters Customs Company Law Labour Laws FEMA The LLP Act 2008 Accounting Standard (INDAS) Others GST VAT Delhi VAT Maharastra VAT Gujarat VAT Telangana VAT Tamil Nadu VAT IGST UTGST Compensation Cess IBC Regulation Utilities Income Tax Bill 2025 IT Act Vs IT Bill 2025 IT Bill 2025 faqs income tax bill faqs income tax bill general Rates of TDS TDS Rates for N.R.I us 195 Rates of Income Tax Depreciation Rates Companies Act Depreciation Rates Income Tax Act ROC Filing Fees (Cos Act, 2013) ROC Fee Structure (Cos Act, 2013) Cost Inflation Index IFSC Codes MICR Codes Rates of NSC Interest Gold and Silver Rates Rates of Stamp Duty LLP Fees National Industries Classification HSN Rate List Deduction u/s 80TTA Vs 80TTB Links Quick Links Important Links GST/VAT Links Ease Of Doing Business Acts Direct Tax Income Tax Act Wealth Tax Act Income Declaration Scheme 2016 Direct Tax Vivad Se Vishwas Scheme Indirect Tax Service Tax(Finance Act, 1994) Central Sales Tax Act, 1956 The Central Excise Act, 1944 Customs Act, 1962 Entry Tax Act Corporate Laws Companies Act, 2013 Companies Act, 1956 LLP ACT SEBI Act, 1992 Company Secretaries Act, 1980 VAT Laws Delhi Value Added Tax Act, 2004 MVAT Act, 2002 West Bengal VAT Act, 2003 Tamilnadu VAT ACT, 2006 Karnataka Value Added Tax Act, 2003 Gujarat Value Added Tax Act, 2003 UP VAT Act, 2008 Rajasthan Value Added Tax Act, 2003 Punjab Value Added Tax Act Haryana Value Added Tax Act Telangana VAT Act 2005 Andhra Pradesh VAT Act, 2005 Bihar Value Added Tax Act, 2005 Other Statutes ESI Act, 1948 PF Act, 1952 Profession Tax Act The Indian Partnership Act, 1932 Societies Registration Act, 1860 Competition Act, 2002 Reserve Bank of India Act, 1934 MRTP Act, 1969 Equalisation Levy Act, 2016 Right To Information Act, 2005 FEMA, 1999 Maharashtra RERA RERA, 2016 Insolvency & Bankruptcy Code, 2016 Benami Property Act 1988 GST Laws IGST Act , 2017 Rules Direct Tax Rules Income Tax Rules Wealth Tax Rules 1957 Income Declaration Scheme Rules 2016 Indirect Tax Rules GST Valuation Rules , 2016 Service Tax Rules CST (Delhi) Rules, 2005 CST (Maharashtra) Rules Customs Valuation Rules Cenvat Credit Rules, 2017 Entry Tax Rules Corporate Laws Rules Companies Rules, 2014 LLP Rules, 2009 LLP Winding up Rules, 2012 Cos Unpaid Dividend Rules, 1978 VAT Laws Rules Delhi VAT Rules, 2005 Maharashtra VAT Rules, 2005 West Bengal VAT Rules, 2005 Tamilnadu VAT Rules, 2007 Karnataka VAT Rules, 2005 Gujarat VAT Rules, 2006 Uttar Pradesh VAT Rules, 2008 Rajasthan VAT Rules, 2006 Punjab VAT Rules Haryana VAT Rules, 2003 Telangana VAT Rules 2005 Andhra Pradesh VAT Rules, 2005 Bihar Value Added Tax Rules, 2005 Other Statutes Profession Tax Rules NBFC Deposits Directions, 1998 NBFC & Misc NBC (Advt) Rules, 1977 NBFC Auditor Report Directions, 2008 Delhi Labour Welfare Fund Rules, 1997 Cost records and audit Rules, 2014 Baggage Rules, 2016 Equalisation Levy Rules, 2016 NCLT And NCLAT Rules Insolvency & Bankruptcy Rules Benami Property Rules, 2016 GST Rules CGST Rules, 2017 IGST Rules 2017 Forms Income Tax Forms ROC Forms (Cos Act, 2013) ROC Forms (Cos Act, 1956) Income Declaration Forms Wealth Tax Forms Service Tax Forms Companies Unpaid Dividend Forms NBFCs Forms LLP Winding up FEMA Forms LLP Forms CGST Forms GST Forms Accounts and Records Advance Ruling Appeals and Revision Assessment and Audit Composition Demands and Recovery Input Tax Credit Inspection, Search and Seizure Offences and Penalties Payment of Tax Refund Registration Returns Transitional Provisions Value of Supply Careers Admin Login Email Login Web-EDGE Contact Us


	Blog Categories All Business eMail Hosting (9) Cloud Solutions (36) Compliance Calendar (4) Culture at Webtel (3) Digital Business Card (1) Digital Database (2) Digital Signature (12) E-invoicing (107) GST (59) HR & Payroll (60) Income Tax (32) Office Automation (32) Remote Desktop Solution (7) Remote Work (3) SAP ERP Management (35) TDS/TCS (21) Updates and Press Releases (38) Website Designing (7) XBRL & Cost-XBRL (9) Why Every CA Must File Form ADT-3: Insights from the Latest MCA Crackdown Category: Updates and Press Releases, Posted on: 25/06/2025 , Posted By: Webtel Visitor Count:1 The Ministry of Corporate Affairs (MCA) has sent a strong message to the Chartered Accountant (CA) community by upholding a ₹50,000 penalty against CA Vijay Bora for failing to notify the Registrar of Companies (ROC) after resigning as statutory auditor. This case highlights the critical nature of compliance responsibilities for CAs, especially regarding timely statutory filings post-resignation. The incident serves as a wake-up call for professionals to avoid procedural lapses that can lead to significant penalties. The Case at a Glance Who was penalized and why: CA Vijay Bora, from Mumbai-based M/s Doogar & Associates, served as statutory auditor for Maheep Marketing Pvt. Ltd., a West Bengal-registered company. After his resignation, he failed to file the mandatory Form ADT-3 with the ROC, as required under Section 140(2) of the Companies Act, 2013. Timeline of events: ü January 2023: MCA issued a notice regarding the non-filing. ü July 2023: With no response received, the ROC levied a ₹50,000 fine. ü October 2023–May 2025: Bora appealed, but the hearings saw repeated adjournments. ü May 5, 2025: At the final hearing, Bora’s representative could not establish any procedural flaw in the ROC’s order. Outcome: The MCA confirmed the penalty, emphasizing that no valid reason was given for cancellation. The order warned that non-payment within 90 days could lead to stricter consequences, including further fines or prosecution under Section 454(8)(ii). Legal Framework—Section 140(2) of Companies Act, 2013 Obligations of Auditors: Section 140(2) mandates that any auditor who resigns must file a statement in Form ADT-3 with the ROC within 30 days of resignation. Consequences of Non-compliance: Failure to comply attracts a penalty of ₹50,000 or the auditor’s remuneration (whichever is less), plus ₹500 per day for continued default, up to a maximum of ₹5 lakh. Additional risks: Persistent non-payment can result in prosecution and even higher penalties under Section 454(8)(ii). Why This Matters—Implications for CAs and Firms Regulatory Scrutiny: The MCA’s action signals increased vigilance and a zero-tolerance approach to compliance failures. Professional Reputation: Non-compliance can damage a CA’s standing and may trigger disciplinary action by the Institute of Chartered Accountants of India (ICAI). Financial Risks: Penalties can be substantial, and unresolved cases may escalate to legal proceedings. Auditor Resignation Compliance Checklist Step-by-step guide for CAs: File Resignation Statement (Form ADT-3) with ROC within 30 days of resignation. Clearly state the reasons for resignation and all relevant facts in the filing. For companies under Section 139(5) (e.g., government companies), also file with the Comptroller and Auditor General of India (CAG). Ensure timely filing to avoid penalties. Maintain documentation: resignation letter, ADT-3 acknowledgment, and all related correspondence. If appealing a penalty, prepare thoroughly and avoid repeated adjournments. Lessons Learned and Best Practices Proactive Compliance: Maintain a compliance calendar and regularly review statutory obligations. Documentation: Keep thorough records of all filings and correspondence. Professional Development: Stay updated on MCA notifications and regulatory changes. Seek Expert Advice: Consult legal or compliance experts when in doubt. Conclusion This case underscores the importance of strict compliance with statutory requirements for CAs. The MCA’s decisive action serves as both a warning and a lesson—timely, accurate filings are not optional. Chartered Accountants must prioritize compliance to protect their professional standing and avoid costly penalties. Quick Facts: Penalty of lesser of Rs. 50,000 or amount of remuneration Penalty increases by ₹500 per day after the initial fine Maximum penalty for non-filing ADT-3: ₹2 lakh Appeals require timely, well-prepared representation Disclaimer: The content of the blog does not create any responsibility of the firm / its authorized persons whose website is being accessed. The blog is not for legal use. Kindly verify the correctness of data/contents from your own sources. This is only for information purpose. Add a Comment Name: Your Comment: View Comments (0)

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