The Insolvency and Bankruptcy Board of India (IBBI) has de-recognized thirteen Insolvency Professional Entities on ground of non-compliance with the procedures.
These thirteen IPEs are directed to (a) surrender their original certificates of recognition to the Board, and (b) inform the concerned Registrar of Companies about their de-recognition.
The Board grants a certificate of recognition as an Insolvency Professional Entity (IPE) under Regulation 13(1) of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016 (Regulations), subject to the conditions.
In April, The Board issued circular advising that every IPE recognized as on 1st April, 2018 should ensure compliance with the provisions of the concerned Regulations, under intimation to the Board, failing which it may be de-recognized in accordance with regulation 14 of the said Regulations.
Thereafter, vide e-mail(s) dated 5th October, 2018, the Board sought the status of compliance with the provisions of sub-regulation (1) of regulation 12 of the Regulations by 15th October, 2018 from the recognised IPEs. It informed, vide the said e-mail(s), that if an IPE failed to intimate the status of compliance by that date, it shall be presumed that the said IPE did not comply with the provisions of sub-regulation (1) of regulation 12 of the Regulations and shall be de-recognised forthwith in accordance with the aforesaid regulation 14.
In response to the above, ten IPEs sought extension of time to comply with the provisions of the regulation 12. However, the rejected the requests since the law does not provide for relaxation or extension of time and intimated the same to the said entities on 6th November 2018.
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