Why CAs & CSs Must Retain Original Signed Documents Before MCA Filings
A Critical Compliance Lesson from a Recent Chandigarh Case
In today’s digital compliance environment, filing documents on the MCA portal has become routine for Chartered Accountants (CAs), Company Secretaries (CSs), and corporate professionals. However, a recent criminal case from Chandigarh has exposed a dangerous misconception: that uploading scanned or digitally shared documents is sufficient professional compliance.
This case serves as a strong warning that statutory filings are not merely technical tasks. They carry legal accountability, and failure to follow proper documentation discipline can expose professionals to criminal liability, not just disciplinary action.
This article explains the issue in detail, clarifies professional responsibility, and lays down best practices every CA and CS must follow to protect themselves.
The Chandigarh Case: What Triggered the Alarm?
In 2025, a high-value investment fraud case involving a private company came under police investigation in Chandigarh. The matter involved allegations of investor deception, forged corporate records, and misappropriation of funds amounting to approximately ₹3.15 crore.
During the investigation, authorities found that multiple corporate documents, including board resolutions and filings uploaded on the MCA portal, were allegedly forged. These documents showed signatures of investors and directors that were later disputed.
The critical turning point in the case was not merely the existence of forged documents — it was the professional’s inability to produce the original signed records that had been used for statutory filings.
As a result, serious criminal allegations were framed, including cheating and forgery under the Indian Penal Code. The case moved beyond professional negligence into the realm of criminal prosecution.
Why Original Signed Documents Matter Legally
Many professionals assume that once a document is uploaded to the MCA portal, their responsibility ends. This assumption is legally incorrect.
Courts and investigating agencies follow a clear principle:
Digital uploads are evidence of filing, not proof of authenticity.
When a document’s validity is challenged, the following questions arise:
- Who prepared the document?
- On whose instructions was it filed?
- Were signatures genuine?
- Can the professional produce the original signed copy?
If originals are unavailable, investigators may infer that the document was fabricated or altered before upload.
In criminal investigations, the burden shifts heavily on the professional to demonstrate due diligence.
Professional Duty Under MCA and Allied Laws
Under the Companies Act, 2013 and professional conduct rules, CAs and CSs are not mere upload operators. They are certifying professionals.
This means:
- You are expected to verify documents before filing
- You are expected to exercise professional skepticism
- You are expected to retain records supporting your filings
Failure to do so can attract:
- Criminal prosecution under IPC
- Disciplinary action by ICAI / ICSI
- Civil liability from affected parties
- Long-term reputational damage
Common Risky Practices Professionals Must Avoid
Over the years, certain practices have become common but are extremely risky:
Uploading documents based only on WhatsApp or email scans
Relying on client assurances without physical verification
Accepting unsigned drafts for “urgent filings”
Failing to maintain document retention files
Treating MCA filings as clerical work
The Chandigarh case demonstrates that when disputes arise, verbal explanations and digital copies offer no protection.
What Courts Expect from Professionals
Judicial reasoning in such cases is clear:
If a professional uploads a document on a government portal, they must be able to demonstrate:
- Who signed it
- When it was signed
- That the signatory was authorized
- That the document was genuine
If originals cannot be produced, courts may presume lack of due diligence or active involvement.
Best Practices Every CA & CS Must Follow
To safeguard yourself and your firm, adopt the following non-negotiable practices:
Always obtain physically signed original documents
Maintain a structured document retention system
Keep originals safely for statutory limitation periods
Avoid filings under client pressure or urgency
Record written instructions and approvals
Refuse to file if originals are not provided
These practices are not optional. They are professional survival tools.
Digital India Does Not Mean Paperless Responsibility
While India is moving rapidly toward digital governance, legal accountability has not disappeared. Digitization has simplified filings, but it has also increased scrutiny.
Government portals record who filed what and when. Once an issue arises, investigators reconstruct the entire compliance trail. Professionals are often the first line of inquiry.
Lessons for the Professional Community
This case is not about fear-mongering. It is about awareness.
Most professionals involved in litigation never imagined they would face criminal allegations. The common factor in such cases is weak documentation discipline.
One missing original document can undo years of professional credibility.
How Kyna FinTax Helps Clients and Professionals Stay Safe
At Kyna FinTax Associates, we strongly believe that compliance is not just about filing forms — it is about protecting clients and professionals alike.
Our internal compliance process focuses on:
- Strict documentation verification
- Original record retention protocols
- Clear client responsibility demarcation
- Risk-based compliance advisory
- Ethical refusal of unsafe filings
We advise businesses, directors, and professionals to treat documentation as a legal shield, not a formality.
Final Thoughts
The Chandigarh case is a wake-up call for the entire CA and CS community.
Uploading documents without retaining original signed copies is no longer just a procedural lapse — it can become a criminal risk.
Professional diligence today is the difference between protection and prosecution tomorrow.
📍 Kyna FinTax Associates
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South West Delhi – 110046
📞 +91 74210 82222
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