NEW DELHI: The Insolvency and Bankruptcy Board of India (IBBI) has notified regulations for handling complaints and grievances filed against service providers including insolvency professionals, agencies and information utilities. These regulations, notified on December 7, became effective the same day, the corporate affairs ministry stated on Sunday.
According to the finance ministry, the regulations “provide for an objective and transparent procedure for disposal of grievances and complaints by the IBBI, that does not spare a mischievous service provider, but does not harass an innocent service provider.”
As per the regulations, stakeholders who can file a complaint include debtors, creditors, claimants, service providers, resolution applicants or any other person having an interest in an insolvency resolution, liquidation, voluntary liquidation or bankruptcy transaction under IBC, 2016.
“On the other hand, a service provider, against whom a complaint can be filed by a stakeholder under the Regulations, includes insolvency professional agency, insolvency professional, insolvency professional entity or information utility,” the statement said.
According to the notified rules, stakeholders will need to pay a fee of Rs 2,500 along with the complaint. “If the complaint is not frivolous or malicious, the fee will be refunded,” the finance ministry said.
The regulations have been long awaited by stakeholders.
