In the matter of Mr. Sajeve Bhushan Deora, Insolvency Professional

Last updated: 16 December 2020

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The Insolvency and Bankruptcy Board of India (IBBI) has issued an order concerning Mr. Sajeve Bhushan Deora, an Insolvency Professional. The order addresses a Show Cause Notice issued to Mr. Deora for accepting an assignment as Interim Resolution Professional (IRP) in the Corporate Insolvency Resolution Process (CIRP) of SMS Paryavaran Limited after 31st December 2019, without holding a valid Authorisation for Assignment (AFA). While Mr. Deora submitted that he had given his consent before the deadline, the Disciplinary Committee found that he accepted the role after the stipulated date without the required AFA, contravening regulations. However, as disciplinary action had already been taken by his professional agency, the IBBI disposed of the notice without further direction.

INSOLVENCY AND BANKRUPTCY BOARD OF INDIA (Disciplinary Committee) No. IBBI/DC/54/2020 14thDecember 2020 Order In the matter of Mr. Sajeve Bhushan Deora, Insolvency Professional (IP) under Regulation 11 of the Insolvency and Bankruptcy Board of India (Insolvency Professional) Regulations

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FAQ :

The order addresses allegations that Mr. Sajeve Bhushan Deora, an Insolvency Professional, accepted an assignment in the Corporate Insolvency Resolution Process (CIRP) of SMS Paryavaran Limited after 31st December 2019, without possessing a valid Authorisation for Assignment (AFA).

An Authorisation for Assignment (AFA) is a document issued by an insolvency professional agency to an insolvency professional, authorising them to undertake an assignment. Regulation 7A of the IBBI (Insolvency Professionals) Regulations, 2016, requires IPs to hold a valid AFA for any assignment accepted or undertaken after 31st December 2019.

Mr. Deora argued that he had provided his consent for the assignment before 31st December 2019, and that the requirement for an AFA did not apply to his situation as the consent was given prior to the effective date of the regulation.

The Disciplinary Committee found that Mr. Deora accepted the role of Resolution Professional in March 2020, which was after the 31st December 2019 deadline, without holding a valid AFA. They concluded that this contravened the relevant regulations.

Since Mr. Deora had already been found guilty of professional misconduct by his own professional agency and a penalty of Rs 10,000/- was imposed, the IBBI's Disciplinary Committee disposed of the Show Cause Notice without issuing any further directions.