India Bankruptcy Regulator Cancels Insolvency Professional’s Registration

The Insolvency & Bankruptcy Board of India (IBBI) canceled the registration of insolvency professional (IP) Vineet Aggarwal for failing to discharge his duties on multiple counts.

The action against Aggarwal (IBBI/IPA-001/IP-P00475/2017-2018/10818) came after the bankruptcy regulator issued a show cause notices to him and appointed investigating authorities to conduct probes regarding his handling of the corporate insolvency resolution processes (CIRP) of JSM Devcons India Private Ltd. and Nu Tek India Ltd., according to the order passed by the IBBI’s Disciplinary Committee (DC).

“In view of the forgoing discussion and materials available on record, the DC finds that the IP failed in discharge of his duties on multiple counts, and in view of the observations and analysis, the DC notes that the conduct of the IP contravening provisions of the code and the rules and regulations thereunder is established,” the order dated 20 November said.

The regulator said that contraventions by Aggarwal, a chartered accountant, were recorded and upheld earlier also, and he was suspended from taking assignment under the Insolvency & Bankruptcy Code (IBC) for two years, starting from 13 April 2023 as IP.

“The underlying theme is habitual non-cooperation with the authorities,” it added.

The IBBI said several contraventions have been established without an “iota of doubt”. The DC finds it unthinkable that an IP refuses to obey or cooperate with the National Company Law Tribunal (NCLT) and instead has gone on to mention in his submissions that he is “pained” by the “attitude” of the NCLT, it noted.

“This was further compounded by the fact that he consistently refrained from extending due cooperation with the board appointed investigating officers,” the regulator said.

The IBBI said submissions of forms to the board with considerable delay tantamount to lackadaisical behavior, bereft of required professionalism, which otherwise is a necessary precondition for discharging duties bestowed to an IP under the provisions of the IBC.

As a result, the DC passed the order canceling the registration of Aggarwal with immediate effect.

(Send feedback to editor@cornerofficejournal.com)