Completing its proceedings against errant members involved in Satyam scam of 2009, chartered accountants' apex body ICAI has cancelled their memberships and has imposed a fine of Rs five lakh each against them. 

In the wake of Satyam scam, disciplinary action was initiated against the concerned statutory auditors including audit incharge, then CFO of the company and Head of Internal Audit Department. 

"After completion of enquiry against the aforesaid persons, the Disciplinary Committee, having found them guilty of professional misconduct, has awarded the maximum punishment of removal of their name(s) from the Register of Members permanently and also imposed a fine of Rs 5 lakh each on them," ICAI President K Raghu said. 

"The Appellate Authority constituted under Section 22A of the Chartered Accountants (Amendments) Act, 2006 in all cases, except one case which is yet to be heard by the said Authority, has also upheld the decision of the Disciplinary Committee of ICAI," Raghu said in a statement. 

ICAI began looking into the role of auditors with regard to Satyam case after it came to light in 2009 as the country's biggest accounting fraud. 

The founder chairman of Satyam Computer B Ramalinga Raju had fudged the company's accounts to the tune of more than 6,000 crore over a period of nine years starting from 2000. The misdeed was disclosed by Raju himself in January 2009. 

Earlier this year, ICAI had said that it would officially bar three of its members -- Srinivas Talluri, S Gopalakrishnan and V Srinivasu -- from practising as chartered accountants after being found guilty in the Satyam scam. 

Talluri and Gopalakrishnan were part of Price Waterhouse and Company of India at Bangalore -- the statutory auditor of Satyam from 2000 till 2009. Talluri was signing partner and engagement leader of the audit team while Gopalakrishnan was partner. 

V Srinivasu was then senior vice president and director at Satyam, which was later sold to Tech Mahindra through a government-monitored auction following the scam. 

A disciplinary panel of the institute had found them guilty of professional misconduct in carrying out the audit of the books of Satyam. 

The name of another ICAI member Prabhakar Gupta, who was also found guilty with regard to Satyam fraud, has already been removed from the register, ICAI had said. 

In the case, the accounting regulator had barred two other members -- P Sivaprasad and Chintapatla Ravindernath -- for professional misconduct. (Economic Times)