The Insolvency and Bankruptcy Board of India (IBBI) suspended the Registration of an Insolvency Professional (IP) since the non-response to Investigating Authority(IA) amounts to violative of the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017.
A Show Cause Notice (SCN) was issued to Mr Rohit Vora Insolvency Professional under section 220 of the Insolvency and Bankruptcy Code, 2016 (Code) read with regulation 13 of the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017 (Inspection and Investigation Regulations).
Mr Rohit Vora is a Professional Member of the Insolvency Professional Agency (IPA) of the Insolvency Professional Agency of the Institute of Cost Accountants of India (IPA-ICAI) and an Insolvency Professional (IP) registered with the Insolvency and Bankruptcy Board of India (Board)
The NCLT, Mumbai Bench (Appellate Authority (AA)) admitted the application under section 7 of the Code filed by the financial creditor Dena Bank, for initiating the Corporate Insolvency Resolution Process (CIRP) of Jogma Laminates Industry Private Limited (CD) where Mr Rohit Vora was appointed as the Interim Resolution Professional (IRP) and later confirmed as Resolution Professional (RP) by CoC in its first meeting dated 24.05.2019.
Further in the 3rd CoC meeting dated 18.07.2019, a resolution was passed by CoC to change RP but no application was filed before AA for the replacement of RP and Mr Vora continued to work as RP till the passing of the liquidation order by AA. On 16.11.2022 where Mr Rajas Shreeram Bodas was appointed as liquidator.
The Board, in the exercise of the powers conferred to it under section 218 of the Code read with the Inspection and Investigation Regulations, appointed an Investigating Authority (IA) to conduct the inspection of Mr Rohit Vora in CIRP of CD. The IA served notice of investigation as per regulation 8(1) of the Inspection and Investigation Regulations on 27.12.2022.
The IP has failed to provide any specific response. IA requested to provide a copy of the appeal filed before the NCLAT. However, no further response was received from Mr Vora. The IA after awaiting a response from Mr. Vora, was constrained to submit the Investigation Report on 24.04.2023.
The Disciplinary Committee( DC) noted that on several counts, contraventions have been established. Some of the violations as observed by AA are under challenge. Even living the sub judice matters aside, Mr Rohit Vora has been found erring in many other aspects which are not covered under the order of the AA. Not responding to Investigating Authority, is akin to undermining the authority of the Board and is a blatant violation of regulations 8(4) and 8(8) of the Inspection and Investigation Regulations, regulation 7(2)(h) of the IP Regulations read with clauses 18 and 19 of the Code of Conduct. On this count itself, a message is required to be sent to the regulated professionals that communication from the Board cannot be taken lightly.
The DC, in the exercise of the powers conferred under section 220(2) of the Code read with IBBI (Insolvency Professionals) Regulations, 2016 and the IBBI (Inspection and Investigation) Regulations, 2017, hereby, suspends the registration of Mr Rohit Vora for one year.
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