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CS Professional · Compliance Management, Audit and Due Diligence · Values, Ethics and Professional Conduct

On appeal by CS Neha Iyer against a Disciplinary Committee order imposing a fine of Rs 1 lakh, the Authority calls for the records and, after hearing both parties, finds the penalty too lenient for the proven misconduct. Which statement is correct under section 22E?

The Authority may enhance the penalty, provided it first gives the parties an opportunity of being heard. Section 22E(2) lets it confirm, modify or set aside the order, and impose, reduce or enhance penalty. Remitting the case is optional, not compulsory.

  1. AThe Authority may only confirm or set aside the order, and cannot alter the penalty
  2. BThe Authority may enhance the penalty, after giving the parties an opportunity of being heardCorrect
  3. CThe Authority may enhance the penalty without hearing the parties, since it is the final authority
  4. DThe Authority must remit the case to the Disciplinary Committee and cannot decide it itself

Explanation

Section 22E(2)(b) lets the Authority impose any penalty or set aside, reduce or enhance the penalty. The proviso requires it to give the parties an opportunity of being heard before passing any order. Remit is only one option, not mandatory, and the power is wider than confirm or set aside.

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