Appellate Authority MCA Appointments: Key Professionals Named as Part-Time Members
The Ministry of Corporate Affairs (MCA) has appointed 2 Chartered Accountants (CAs), 2 Company Secretaries (CSs), and 1 Cost Accountant (CMA) as part-time members to the Appellate Authority under Rule 6 of the Companies (Auditor’s Report) Order (CARO) Rules. This strengthens the appellate mechanism for audit-related disputes under the Companies Act, 2013.
This update is significant for auditors, companies, and compliance professionals, especially those involved in appeal procedures against orders passed under Section 132(4) of the Companies Act by the National Financial Reporting Authority (NFRA).
What Is the Appellate Authority under the Companies Act?
The Appellate Authority is a quasi-judicial body constituted under Rule 6 of the Companies (Auditor’s Report) Order, 2020, primarily to hear appeals against NFRA orders.
- Legal Basis: Section 132(5) and (6) of the Companies Act, 2013
- Composition: Chairperson and members nominated by MCA
- Powers: Review and overturn NFRA penalties or directions
- Appeal Time Limit: 90 days from NFRA’s order
New MCA Appointments – 2025
As per MCA’s recent notification:
| Member Type | Name (as per Notification) | Role |
|---|---|---|
| Chartered Accountant | CA Balwinder Singh, CA Abhijit Ghosh | Part-time |
| Cost Accountant (CMA) | CMA B.B. Goyal | Part-time |
| Company Secretary | CS Nagendra Rao, CS Gopalakrishna Hegde | Part-time |
These appointments bring a multidisciplinary perspective to the appellate process—critical for ensuring fair and balanced decisions on audit compliance issues.
Why This Matters to Taxpayers and Auditors
This move signals stronger checks on NFRA’s disciplinary actions and more industry-aligned interpretation of audit-related provisions. For instance:
- Small and mid-sized firms gain confidence that the appeal body has practitioners from relevant domains (audit, cost, and secretarial).
Legal Angle: Relevant Provisions
- Companies Act, 2013:
- Section 132(4): NFRA’s power to investigate misconduct
- Section 132(5)-(6): Right to appeal and Appellate Authority structure
- CARO Rules, 2020:
- Rule 6: Constitution and appointment of Appellate Authority members
- MCA Notification: Read official update on mca.gov.in
Expert View: A Welcome Move for Fair Appeals
“Inclusion of domain experts ensures that appeals are evaluated with practical insight, not just legal formality. It restores trust in NFRA’s review system,” says a former ICAI council member.
How to File an Appeal Before the Appellate Authority?
Step-by-step procedure:
- Check eligibility: Only appeals under Section 132(4) are entertained
- Prepare documentation: Include NFRA’s order, grounds of appeal, and affidavits
- File within 90 days: From the date of NFRA’s order
- Submit to MCA: As per prescribed format
- Await hearing: Notice will be sent for personal or legal representative appearance
Note: Delays beyond 90 days require a condonation request with valid justification.
Key Takeaways
- MCA has appointed five professionals as part-time members to the Appellate Authority.
- Strengthens NFRA appeal framework under the Companies Act, 2013.
- Includes CAs, CSs, and CMA for domain-expert decision making.
- Enables fair redressal mechanism for auditors and professionals penalised by NFRA.
FAQs
Q1. Who can appeal to the Appellate Authority under Section 132?
Only auditors or firms aggrieved by NFRA orders under Section 132(4) can appeal.
Q2. What’s the time limit to file an appeal?
Within 90 days of receiving the NFRA order. Delay may be condoned on sufficient cause.
Q3. Are the newly appointed members full-time?
No, they are appointed as part-time members as per Rule 6 of CARO Rules.
Q4. Where can I check the official list of appointed members?
Visit the official MCA site: www.mca.gov.in
Summary
The MCA has appointed 2 CAs, 2 CSs, and 1 CMA as part-time members to the Appellate Authority under the Companies Act, 2013. This panel reviews appeals against NFRA orders, improving fairness and sectoral representation in audit-related compliance cases.
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