IBBI suspends Insolvency Professional for 3 months

IBBI suspends Insolvency Professional for 3 months: The Insolvency and Bankruptcy Board of India (IBBI) barred insolvency professional (IP) Mr. Rajneesh Singhvi from taking fresh assignments or rendering services for three months. Mr. Rajneesh Singhvi is a Professional Member of the Indian Institute of Insolvency Professionals of ICAI and an Insolvency professional registered with the Insolvency and Bankruptcy Board of India (Board). The Relevant Text of the Order as follows : 4. In the aforesaid backdrop and on the basis of analysis and findings in para 3, this DC finds that Mr. Rajneesh Singhvi, the RP, has appointed Mr. Abhishek Ahuja, who was not a registered valuer as on the date of his engagement, as a valuer for valuation of assets of CD. This conduct of Mr. Singhvi is in contravention of the following provisions of the Code and Regulations:-

I (a) Clause (d) of sections 25 (2) and clauses (a) and (e) of 208 (2) of the Code;

(b) Clauses (a),(h) and (i) of regulation 7(2) of the IP Regulations read with clauses 10 and 14 of the Code of Conduct contained in the First Schedule of the IP Regulations;

(c) Regulation 27 of the CIRP Regulations.

II Further, Mr Singhvi also did not comply with IBBI Circular IBBI/RV/019/2018 dated 17th October 2018 which provided in para 6 that no insolvency professional shall appoint a person other than a registered valuer to conduct any valuation under the Code or any of the regulations made thereunder.

5. This DC is conscious of the fact that the valuer appointed by Mr. Singhvi had qualified the valuation examination prior to the date of his appointment as a valuer in the CIRP of the CD and the fact that the valuation fee received by the valuer has been refunded back to the CD which may call for leniency. [caption id="attachment_90901" align="aligncenter" width="333"] IBBI suspends Insolvency Professional for 3 months[/caption] 6. In view of the above, the Disciplinary Committee, in exercise of the powers conferred under section 220 (2) of the Insolvency and Bankruptcy Code, 2016 and in pursuance of sub-regulations (7), (8), (9) and (10) of Regulation 11 of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016, disposes of the SCN with the following directions:

(i) Mr. Rajneesh Singhvi shall not seek or accept any process or assignment or render any services under the Code for a period of three months from the date of coming into force of this Order. He shall, however, continue to conduct and complete the assignments / processes he has in hand as on date of this order;

(ii) This Order shall come into force on expiry of 30 days from the date of its issue.

(iii) A copy of this order shall be forwarded to the Indian Institute of Insolvency Professionals of ICAI where Mr. Rajneesh Singhvi is enrolled as a member.

(iv) A copy of this Order shall also be forwarded to the Registrar of the Principal Bench of the National Company Law Tribunal, for information.

7. Accordingly, the show cause notice is disposed of.