IBBI suspends RP for a year over ₹5 lakh monthly fee
In short
IBBI suspended a resolution professional for one year after he took ₹5 lakh every month without getting approval from the Committee of Creditors. The order said this broke Regulation 34B(2) and professional conduct rules.
IBBI also asked for the excess money to be refunded. The move targets how fees are handled in insolvency cases.
What the reporting says
IBBI suspended a resolution professional for one year after finding he withdrew ₹5 lakh a month without prior Committee of Creditors approval. The action was tied to a breach of Regulation 34B(2) and professional conduct requirements. IBBI also directed refund of the excess amount, making the order a direct penalty for unauthorized fee withdrawals in the insolvency process.
Why it matters
IBBI’s order against the resolution professional was issued after it found monthly withdrawals of ₹5 lakh without prior CoC approval. The regulator said this breached Regulation 34B(2) and professional conduct standards, and it directed refund of the excess amount. The decision affects insolvency professionals and committee oversight in insolvency proceedings.