Monetary Penalties to be imposed by an Insolvency Professional Agency

Last updated: 30 July 2021
Quick Summary
Insolvency Professional Agencies (IPAs) can now impose monetary penalties on their professional members for various contraventions. These penalties, ranging from ₹50,000 to ₹2,00,000 or 25% of the fee (whichever is higher), are designed to ensure objectivity and uniformity. The penalties cover a wide array of issues, including failure to submit disclosures, accepting assignments with conflicts of interest, improper record maintenance, and non-compliance with directions from authorities.

Insolvency and Bankruptcy Board of India 7thFloor, Mayur Bhawan, Connaught Place, New Delhi-110001. CIRCULAR No. IBBI/IPA/43/2021 28thJuly, 2021 To All Registered Insolvency Professional Agencies All Registered Inso
Daily Limit Reached

You have reached your daily limit of 2 Free Notice & Circular

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?
  • No Ads
  • WhatsApp Broadcasts
  • Daily E-Newsletter
  • Unlimited Notice & Circular Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
View all CCI PRO benfits

Already a PRO member? Login here for an ad-free experience.

FAQ :

The Disciplinary Committee of an Insolvency Professional Agency (IPA) can impose monetary penalties on its professional members.

The penalties are intended to provide a graduated system for minor non-compliances, ensuring objectivity and uniformity in addressing professional misconduct.

For failing to submit disclosures, returns, etc., the penalty is up to ₹1,00,000 or 25% of the fee, whichever is higher, with a minimum of ₹50,000.

Accepting an assignment with a conflict of interest can result in a penalty of up to ₹2,00,000 or 25% of the fee, whichever is higher, subject to a minimum of ₹1,00,000.

This circular and the associated penalties come into force with immediate effect.

Contraventions include failing to submit disclosures, accepting assignments with conflicts of interest, improper record maintenance, rejecting claims without reason, failing to comply with directions, outsourcing duties, failing to appoint registered valuers, and failing to make public announcements, among others.

 
Comments

Recent Notification/Circulars :

  1. SEBI Recovery Proceedings for Outstanding Disgorgement and Interest in IPO Irregularities
  2. SOP for Customs Clearance of Imported Goods through Foreign Post Offices (FPOs)
  3. Government Revises Central Excise Duty Rate to Rs. 1.5 Per Litre via Notification No. 42/2026
  4. India Extends Anti-Dumping Duty on Phthalic Anhydride Imports from China and South Korea for Five Years
  5. Odisha Joint Entrance Examination Committee Gets Tax Exemption under Schedule III of the Income-tax Act, 2025
  6. CBDT Notifies Odisha Joint Entrance Examination Committee for Income Tax Exemption under Section 10(46)
  7. CBDT Notifies Noida Special Economic Zone Authority for Income Tax Exemption under Schedule III of the Income-tax Act, 2025
  8. CBDT Notifies Noida Special Economic Zone Authority for Income Tax Exemption under Section 10(46) for AY 2024-25 to AY 2026-27
  9. CBDT Notifies Noida Special Economic Zone Authority for Income Tax Exemption under Section 10(46)
  10. CBDT Notifies District Legal Services Authority, Charkhi Dadri for Income Tax Exemption under Schedule III of the Income-tax Act, 2025

View More Notifications


Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Pro Member Soumitra PatraSoumitra PatraPro Member Dhananjay SinghDhananjay SinghPro Member Sharang Sanjay MangalekarSharang Sanjay MangalekarPro Member Umesh KambleUmesh KamblePro Member Leena RachhLeena Rachh
Subscribe to Pro
Join an elite circle of professionals


Browse by Category