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

The Disciplinary Committee imposes a modest reprimand on CS Neha Gupta. The Director (Discipline), authorised by the Council, appeals to the Authority, and the Authority, after hearing both parties, wants to increase the penalty. Which statement is correct?

The Authority may enhance the penalty, but only after giving the parties concerned an opportunity of being heard. Section 22E(2)(b) allows it to set aside, reduce or enhance a penalty, and the proviso makes a hearing mandatory before any order.

  1. AThe Authority can only confirm or set aside the order, not enhance it
  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
  4. DOnly the Central Government can enhance the penalty on appeal

Explanation

Section 22E(2)(b) empowers the Authority to impose any penalty or set aside, reduce or enhance the penalty. The proviso requires it to give the parties an opportunity of being heard first. The Director (Discipline) may appeal if authorised by the Council.

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