{"id":89594,"date":"2018-08-27T21:00:53","date_gmt":"2018-08-27T21:00:53","guid":{"rendered":"http:\/\/www.bnreport.com\/ibbi-penalises-five-debt-resolution-professionals\/"},"modified":"2018-08-27T21:00:53","modified_gmt":"2018-08-27T21:00:53","slug":"ibbi-penalises-five-debt-resolution-professionals","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/ibbi-penalises-five-debt-resolution-professionals\/","title":{"rendered":"IBBI penalises five debt resolution professionals"},"content":{"rendered":"

MUMBAI: The Insolvency and Bankruptcy Board of India (IBBI<\/a>) has for the first time penalised at least five resolution professionals, seeking to strengthen the dedicated loan-recovery mechanism that aims to extricate about $160 billion of lenders money stuck in bad assets.<\/p>\n

The penalties came for various reasons, including dubious conduct. Others were pulled up for not following the procedures that give the level-playing field to all creditors and bidders. <\/p>\n

IBBI data compiled by K V Sivaraman, an insolvency expert associated with Delhi-based AAA Insolvency Professionals, show that penalties were imposed on five occasions between April and now. <\/p>\n

Last Thursday, IBBI cancelled the registration of Mukesh Mohan, an insolvency professional in a matter involving four corporate debtors \u2013 JEKPL Pvt Ltd, Carnation Auto India, Athena Demwe Power, and Tirupati Links. The apex insolvency body has debarred him from seeking a new registration for 10 years. <\/p>\n

The regulator indicted Mohan for engaging in private communication with a single lender, abrupt resignation, lapses in finding irregular transactions, and appointing the same registered valuer in all four assignments. The non-compliance list in the regulatory order included six deviations. <\/p>\n

Similarly, Dinkar T. Venkatasubramanian of Ersnt & Young LLP, Gurugram, will have to pay a penalty of Rs 1 lakh, as the interim resolution professional authorised payment of his professional fee to Ernst & Young LLP. Payment was released to EY LLP based on IRP instruction to bank. <\/p>\n

Earlier in May, IBBI permanently cancelled the registration of Rakesh Wadhwa, an interim resolution professional in the case of Ved Cellulose. He breached the standard norms of holding meetings, extending his services beyond the stipulated time. He also did not consider claims of Bank of India<\/a> as he kept the lender outside the committee of creditors. <\/p>\n

\u201cImpartial investigation and timely conclusion of disciplinary proceedings against erring insolvency professionals would help improve the image of the profession,\u201d said Anil Goel, founder AAA Insolvency Professionals. \u201cSuch regulatory action will help prevent non-compliance by insolvency professionals.\u201d <\/p>\n

IBBI suspended the registration of Bhavna Sanjay Ruia, in the case of Madhukon Project, for a year. She will not be able to practise during the one-year period. She charged much higher fees \u2013 as much as Rs 14 crore \u2013 for the entire assignment while total debt of the company was only Rs 4.16 crore. <\/p>\n

\u201cOwing to a number of cases where the roles of resolution professionals have been criticized by the courts, the Board may have been forced to take harsh measures against some RPs,\u201d said Saurav Kumar, Partner, Induslaw, a law firm. <\/p>\n

\u201cThe decision of the disciplinary committee may be construed to be in compliance with the Code and an adequate deterrent,\u201d he said. <\/p>\n

In the Electrosteel case, one of the top 12 insolvency cases with the National Company Law Tribunal<\/a>, Dhaivat Anjaria had to fork out one-tenth of the total fees to IBBI. <\/p>\n

In its April order this year, IBBI charged him with disregarding the timeline of corporate insolvency resolution process (CIRP) despite repeated request. <\/p>\n

<\/a><\/strong> <\/a><\/p>\n

Original Article<\/a><\/p>\n

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ET Markets<\/a><\/h5>\n

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MUMBAI: The Insolvency and Bankruptcy Board of India (IBBI) ..<\/p>\n","protected":false},"author":1,"featured_media":89595,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[202],"tags":[],"class_list":["post-89594","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"\nIBBI penalises five debt resolution professionals - Business News Report<\/title>\n<meta name=\"description\" content=\"MUMBAI: The Insolvency and Bankruptcy Board of India (IBBI) ..\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bnreport.com\/en\/ibbi-penalises-five-debt-resolution-professionals\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"IBBI penalises five debt resolution professionals - 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