IBBI suspends Suspension Order against Registered Valuer in line with Bombay HC Direction [Read Order]
IBBI – Suspension Order against Registered Valuer – Bombay Highcourt Direction -Suspension Order – Registered Valuer – taxscan
IBBI – Suspension Order against Registered Valuer – Bombay Highcourt Direction -Suspension Order – Registered Valuer – taxscan
The Insolvency and Bankruptcy Board of India (IBBI) has issued an order disposing of the appeal filed by Yardi Prabhu Consultants & Valuers Pvt. Ltd. against the previous order dated April 6, 2022.
The appeal was in response to a show cause notice issued to the registered valuer entity on May 4, 2021. IBBI, delegated by the Central Government to oversee the Valuation Rules, announced the resolution today.
Upon careful examination of the allegations, submissions, and hearings, IBBI discovered that the concerned director had filed a Writ Petition (Civil W.P. No. 10440 of 2022) with the Bombay High Court, challenging the suspension order issued on February 28, 2022. On January 12, 2023, the Bombay High Court granted interim relief, staying the effect and operation of the IBBI order dated February 28, 2022. Consequently, IBBI restored the registration of the director in accordance with the High Court's order.
Yardi Prabhu Consultants & Valuers Pvt. Ltd. had been registered as a valuer with IBBI since January 21, 2020.
The suspension of Yardi Prabhu Consultants & Valuers Pvt. Ltd.'s registration was based on rule violations related to the eligibility of a company to be a registered valuer, as stipulated in the Valuation Rules.
The suspension order, issued on April 6, 2022, was a result of a separate show cause notice issued on May 4, 2021.
In response to the suspension, Yardi Prabhu Consultants & Valuers Pvt. Ltd. exercised its right to appeal under rule 17(9) of the Valuation Rules.
The initial order by IBBI was based on serious allegations against one of the directors of Yardi Prabhu Consultants & Valuers Pvt. Ltd. The Economic Offences Wing, Mumbai, had filed charges under various sections of the Indian Penal Code and the Banking Regulation Act, 1949.
According to the order, the alleged misconduct of the director might render them unfit and improper under the Valuation Rules. Rule 3(2)(c) and rule 7(a) of the Valuation Rules state that all directors of a registered valuer entity must be considered fit and proper.
Considering the ongoing legal proceedings in the High Court of Bombay, IBBI has decided not to address the merits of the director's suspension or the status of Yardi Prabhu Consultants & Valuers Pvt. Ltd. at this time.
The suspension order issued by IBBI on April 6, 2022, is hereby suspended, pending the decision of the High Court of Bombay in the Civil Writ Petition No. 10440 of 2022. The registration details of Yardi Prabhu Consultants & Valuers Pvt. Ltd. were directed to be reinstated in the records of IBBI.
To Read the full text of the Order CLICK HERE
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
