IBBI suspends liquidator for misconduct
JACRU reiterated its resolve to combat what it calls egregious corruption and mismanagement that caused the sole national-level paper sector in Assam to fail
IBBI liquidator action – Liquidator misconduct – IBBI suspension news – taxscan
IBBI liquidator action – Liquidator misconduct – IBBI suspension news – taxscan
Assam's Cachar and Nagaon Paper Mills Joint Action Committee of Recognized Unions (JACRU) has agreed the Insolvency and Bankruptcy Board of India's (IBBI) decision to discipline Kuldeep Verma, the liquidator of Hindustan Paper Corporation Ltd. (HPCL), for grave misconduct during the liquidation process.
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Due to Verma's involvement in several instances of ethical and procedural transgressions, his registration as a liquidator has been stopped in accordance with IBBI Order No. IBBI/DC/282/2525, dated 07.04.2025. M/s. Sree Metaliks Limited, M/s. KS Oils Limited, M/s. Jalan Intercontinental Hotels Pvt. Ltd, M/s. Manthan Broadband Services Pvt. Ltd, M/s. Hindustan Paper Corporation Ltd, M/s. Jaypee Infratech Ltd, M/s. Eastern Gases Ltd, and M/s. Advance Multisystem Broadband Communications Ltd. are among the companies whose liquidations are cited in the order, in addition to the HPCL case.
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The disciplinary action was initiated after the IBBI conducted an official investigation and found Verma accountable for the liquidation of HPCL and seven other companies.
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According to JACRU, even though the mills had assets valued at about ₹5,000 crore, the Government of India declared HPCL insolvent due to an unpaid liability of only ₹98 lakhs. On May 2, 2019, the National Company Law Tribunal (NCLT) issued an order for liquidation; JACRU appealed this judgment to the National Company Law Appellate Tribunal (NCLAT).
In its order dated May 29, 2019, the NCLAT said that HPCL must continue to operate as a continuing concern and that, in the event that it is sold, it must do so with its assets and personnel still in place. According to JACRU, Kuldeep Verma sold assets at "throwaway prices" in violation of the NCLAT ruling, creating irreversible harm to Assam's heavy industry and depriving more than two lakh families of their means of subsistence.
JACRU expressed support for the disciplinary action and called for an impartial, high-level probe into the entire liquidation process, overseen by a current High Court judge. To ensure justice and responsibility, the group has demanded that all alleged participants in the liquidation have their moveable and immovable goods seized.
JACRU reiterated its resolve to combat what it calls egregious corruption and mismanagement that caused the sole national-level paper sector in Assam to fail. It appealed to the people to support its continuous fight to uphold workers' rights, restore justice, and rebuild the state's industrial foundation.
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