The Insolvency and Bankruptcy Board of India (IBBI) has imposed a three-year suspension on an insolvency professional for failing to disclose a conflict of interest during the resolution of a RERA-linked scheme. This highlights the regulatory body's commitment to uphold ethical standards in insolvency management.
IBBI Enforces Ethical Standards Among Insolvency Professionals
The Insolvency and Bankruptcy Board of India (IBBI) has suspended an insolvency professional for three years due to undisclosed conflicts of interest related to a RERA-linked pool and build scheme resolution. This decision underscores IBBI’s commitment to maintaining high ethical standards in the profession.
The Disciplinary Committee found that the insolvency professional awarded a construction contract to a consortium that had also submitted a resolution plan, thereby breaching transparency norms mandated under the Insolvency and Bankruptcy Code (IBC). Such actions not only compromise the integrity of the resolution process but also violate professional conduct standards.
“All insolvency professionals must disclose any potential conflicts of interest to ensure transparency.”
This suspension serves as a critical reminder for professionals in the field to adhere strictly to ethical guidelines and regulatory norms, reinforcing the necessity of ethical conduct in insolvency proceedings to safeguard stakeholder interests.
Citations
- IBBI Order (2026)
