IBBI amends Grievance and Complaint Handling Procedure Regulations, 2017 and IBBI (Inspection and Investigation) Regulations, 2017

Last updated: 16 June 2022

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The Insolvency and Bankruptcy Board of India (IBBI) has introduced amendments to its Grievance and Complaint Handling Procedure Regulations and Inspection and Investigation Regulations. These changes aim to create a more streamlined and swift process for addressing complaints against insolvency professionals and other entities. Key revisions include adjusting timelines to expedite resolutions and ensure enforcement actions are more effective, while also reducing the burden on service providers. The amendments also enhance the role of Insolvency Professional Agencies (IPAs) in regulating professionals and ensure outcomes of disciplinary committee orders are communicated to relevant authorities.

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

With a view to put in place, a streamlined and swift complaint handling procedure, the Insolvency and Bankruptcy Board of India notified the Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) (Amendment) Regulations, 2022 and the Insolvency and Bankruptcy Board of India (Inspection and Investigation) (Amendment) Regulations, 2022 to amend 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.

The Insolvency and Bankruptcy Code, 2016 (Code) read with Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations, 2017 provide mechanism for redressal of complaints and grievances filed against insolvency professionals, insolvency professional agencies and information utilities. Further the Code read with Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017 provide mechanism for carrying out inspections and investigations on insolvency professional agencies, insolvency professionals and information utilities and passing orders by Disciplinary Committee.

IBBI Amends Complaint and Investigation Rules for Faster Resolution

The mechanism of complaint/ grievance redressal and subsequent enforcement action has been amended to have expeditious redressal and also to avoid placing undue burden on the service providers. To curtail such delays and to ensure expeditious and result oriented enforcement mechanism, the Amendment Regulations provides for following:

Revisions in various timelines related to enforcement process provided in the (Grievance and Complaint Handling Procedure) Regulations, 2017 and (Inspection and Investigation) Regulations, 2017 for addressing the issue of delay in present mechanism.
Effective participation of IPAs in regulating the IPs through examination of grievances received against IPs.
Intimation to Committee of Creditor (CoC)/ Adjudicating Authority (AA) about the outcome of Disciplinary Committee (DC) order.

The Amendment Regulations are effective from 14^th June, 2022. These are available at www.ibbi.gov.in.

FAQ :

The IBBI has amended 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.

The main goal is to put in place a streamlined and swift complaint handling procedure and to ensure expeditious and result-oriented enforcement.

Revisions have been made to various timelines within the enforcement process to address delays, and Insolvency Professional Agencies (IPAs) will have a more effective role in regulating Insolvency Professionals (IPs) through grievance examination.

The Amendment Regulations are effective from 14th June, 2022.

The regulations provide a mechanism for redressing complaints against insolvency professionals, insolvency professional agencies, and information utilities.

The outcome of a Disciplinary Committee (DC) order will be intimated to the Committee of Creditors (CoC) and the Adjudicating Authority (AA).

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