Registration Acquired through Suppressing Material Fact: IBBI upholds Cancellation of Registration of Registered Valuer
Registration -Acquired – Suppressing Material Fact – IBBI – upholds – Cancellation – Registration – Registered Valuer – taxscan
Registration -Acquired – Suppressing Material Fact – IBBI – upholds – Cancellation – Registration – Registered Valuer – taxscan
The Insolvency and Bankruptcy Board of India(IBBI) upheld the cancellation of the registration of the Registered Valuer as the registration was acquired through suppressing material fact. The Cancellation was made under rule 15 read with rule 17 of the Companies (Registered Valuers and Valuation Rules), 2017.
In terms of rule 17(9) of the Valuation Rules, Mr Venkata Krishna Srinivasa Raju Penmetsa challenged the RV Order. The IBBI issued SCN to Mr Penmetsa which contained allegations that he never brought before Authority the fact that he was named as an accused in a prosecution complaint filed by Enforcement Directorate (ED) against M/s PBR Poultry Tech & others, and MSJ cum Special PMLA Court, Vishakhapatnam has taken cognizance of the prosecution complaint and also issued summons to him.
The above complaint filed by ED is based on the FIR registered by the CBI, ACB, against M/s PBR Poultry Tech. After due investigation, CBI filed a chargesheet Principal Special Judge of CBI Cases Visakhapatnam against some accused including Mr. Penmetsa under section 120-B r/w 420, 468, 471, 477-A of Indian Penal Code, 1860 and section 1392) r/w 13(d) of Prevention of Corruption Act.
The IBBI vide examined the contraventions made in the SCN and the written and oral submissions presented on behalf of Mr Penmetsa. The RV Order cancelled the registration of Mr Penmetsa observing that there is suppression of facts which has a direct bearing on the registration process and is akin to manipulating the decision-making based on false information.
The appellant submitted that he was not aware of the pendency of FIR by the CBI, ACB Visakhapatnam wherein he was arrayed as accused and subsequent chargesheet filed which he came to know after receiving SCN. He submitted that non-mentioning of the above pendency of the case in the application was due to lack of knowledge but not wanton.
Ravi Mital, (Chairperson, IBBI) noted that Mr. Penmetsa has submitted in his reply to SCN dated 31.05.2023 that he received a call from the investigation agency in 2015. The said fact was suppressed from the Board in his application for registered valuer.
The Authority does not find any reason to interfere with the order of IBBI dated 05.06.2023 and dismissed the appeal.
To Read the full text of the Notification CLICK HERE
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