IBBI amends Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations,2017 and the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations,2017

What is the News?

Insolvency and Bankruptcy Board of India has notified amendments to the Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations,2017 and the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017.

What are the Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations,2017?

It provides a mechanism for redressal of complaints filed against insolvency professionals, insolvency professional agencies and information utilities.

What is the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017?

It provides a mechanism for carrying out inspections and investigations on insolvency professional agencies, insolvency professionals and information utilities and passing orders by the disciplinary committee.

What are the amendments?

Purpose: To have expeditious redressal and also to avoid placing an undue burden on the service providers.

The mechanism of the complaint or grievance redressal and subsequent enforcement action has been amended. The major amendments include,

-Effective participation of IPAs (Insolvency Professional Agency) in regulating the IPs (Insolvency Professional) through examination of grievances received against IPs.

-Intimation to Committee of Creditor (CoC)/ Adjudicating Authority (AA) about the outcome of the Disciplinary Committee (DC) order.

Source: The post is based on the article “IBBI amends Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations,2017 and the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations,2017” published in PIB on 17th June 2022.