The Central Government has notified a new amendment to the Insolvency and Bankruptcy Board of India (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016 wherein the Insolvency Professional Agency can promptly realize the monetary penalties imposed by the disciplinary committee.
As per Rule 24(5), the monetary penalty received by the Agency under the orders of the Disciplinary Committee shall be credited to the Insolvency and Bankruptcy Fund constituted under section 224 of the Code.
The notification substitutes the existing rule in clause 24, for sub-clause (5) where “the Agency shall promptly realise the monetary penalty imposed by the Disciplinary Committee and credit the same to the Fund constituted under section 222 of the Code.”
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