IBBI suspends Insolvency Professional for Demand of Undue Advantage of Rs.20 Lakhs [Read Order]

The Insolvency and Bankruptcy Board of India ( IBBI ) has suspended an Insolvency Professional for demand of undue advantage of Rs.20 lakhs.

The Central Bureau of Investigation (CBI) had registered a First Information Report (FIR) under section 154 of Cr.P.C against Mr. Subrata Monindranath Maity an Insolvency Professional (IP) and who is a Professional Member of the Indian Institute of Insolvency Professionals of ICAI. It has been mentioned in the press release by the CBI, that the CBI has arrested Mr. Maity regarding demand for undue advantage of Rs.20,00,000/-.

The Board has requested the Disciplinary Committee, for urgent action in view of the fact the Mr. Maity is handling 13 assignments, which are ongoing. On perusal of the FIR, Disciplinary Committee observed that the allegations are of serious in nature leading to contravention of multiple provisions of the Code including section 208(2)(a) of the Insolvency and Bankruptcy Code,2016 (the Code) read with regulations 7(2)(a), 7(2)(b), 7(2)(h) and 7(2)(i) of the IBBI (Insolvency Professionals) Regulations, 2016 and clauses 1, 2, 3, 5, 9, 12, 14, 17, 24 and 28 of the Code of Conduct specified thereunder.

Disciplinary Committee further observed that his arrest is bound to hamper the ongoing processes being handled by him, and therefore would jeopardise the interest of concerned stakeholders.

This Disciplinary Committee in exercise of the powers conferred by it under sub-regulation 4 of regulation 9 of the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations has issued an ex-parte interim order due to urgency of the matter and suspends the registration of Mr. Subrata Monindranath Maity as an Insolvency Professional.

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