Rules have been amended for faster grievance redressal against insolvency professionals
New Delhi:
The Insolvency and Bankruptcy Board of India (IBBI) has amended the rules relating to redressal of complaints filed against insolvency professionals with a view to establish a streamlined and speedy grievance redressal process.
According to an official release on Wednesday, the IBBI has amended the Insolvency and Bankruptcy Board of India (Complaint and Grievance Management Procedure) Regulations, 2017 and the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017.
The grievance redressal mechanism and subsequent enforcement action have been amended to enable speedy redressal and avoid undue burden on the service providers.
In order to reduce delays and ensure speedy and result-oriented enforcement mechanism, the amended rule provides for amendment in various timelines relating to enforcement process to address the issue of delay in the existing mechanism.
The new rules will also provide for effective participation of income payment agreements or IPAs in regulating insolvency professionals (IPs) through investigation of complaints received against them.
The amended rules require reporting of the outcome of the order of the Disciplinary Committee (DC) to the Committee of Creditors (CoC) or the Adjudicating Authority (AA).
The new rule has come into effect from Tuesday, the statement said.
IBBI is a premier institution in the enforcement of the Insolvency and Bankruptcy Code, which came into force in 2016.
The IBC Code provides a market-guided and time-bound mechanism for resolution of insolvency cases, leading to ease of doing business.
The Insolvency and Bankruptcy Board of India (Grievance and Grievance Redressal Procedure) Regulations, 2017 provides for the mechanism for redressal of complaints lodged against insolvency professionals, insolvency professional agencies and information utilities.
The Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017 provides for the mechanism to conduct inspections and investigations on insolvency professional agencies, insolvency professionals and information utilities and to pass orders by the disciplinary committee.
(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)