IBBI Imposes ₹2 Lakh Penalty on Insolvency Professional for Non-Cooperation in Investigation, Flags Serious Irregularities in CIRP [Read Order]

The Insolvency and Bankruptcy Board of India (IBBI) has imposed a monetary penalty on insolvency professional after finding that he failed to cooperate with an investigation initiated in connection with a Corporate Insolvency Resolution Process (CIRP). The Disciplinary Committee observed that non-cooperation with the Investigating Authority prevented timely examination of allegations relating to valuation and implementation of the resolution plan.

The proceedings arose from a complaint alleging undervaluation of the corporate debtor’s land and building assets during the CIRP of M/s Anush Finlease and Construction Private Limited. While one valuation estimated the liquidation value at approximately ₹98.89 crore, the other placed it at around ₹66.52 crore. The complainant further alleged that the property was ultimately resolved at a value far below its actual worth.

Following the complaint, the Board appointed an Investigating Authority and issued notices to the insolvency professional, Aashish Gupta, to furnish information and records. The Disciplinary Committee noted that despite multiple emails sent to the registered email address, no response was made. It held that such conduct amounted to a breach of statutory duties under the Insolvency and Bankruptcy Code, the IP Regulations, and the Code of Conduct applicable to insolvency professionals.

During the disciplinary proceedings, Aashish Gupta contended that the valuation reports had been deliberated upon by the Committee of Creditors and the difference was not significant. He relied on communications from the suspended director, and also on an earlier valuation. However, the Disciplinary Committee observed that assets under the Code are required to be valued independently of liabilities, presenting the Supreme Court’s ruling in Ghanashyam Mishra and Sons (P) Ltd. v. Edelweiss Asset Reconstruction Co. Ltd. in support.

The Committee also highlighted multiple issues surrounding the approved resolution plan submitted by Kendriya Bhandar (Central Government Employees Consumer Cooperative Society Ltd.), including infusion of funds, transfer of shareholding, appointment of directors, and compliance with performance security requirements. It noted that Kendriya Bhandar’s role as the Successful Resolution Applicant and subsequent developments called for closer scrutiny by the regulator.

In its final order dated December 19, 2025, the Disciplinary Committee, headed by Sandip Garg, imposed a penalty of ₹2 lakh on Aashish Gupta for non-cooperation. It was further ordered that his Authorisation for Assignment will not be renewed for a period of three months or until the conclusion of the investigation, whichever is earlier.

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