IBBI penalises five debt resolution professionals

The Insolvency and Bankruptcy Board of India (IBBI) has for the first time penalised at least five resolution professionals, seeking to strengthen the dedicated loan-recovery mechanism that aims to extricate about $160 billion of lenders’ money stuck in bad assets. The penalties came for various reasons, including dubious conduct. Others were pulled up for not following the procedures that give the level-playing field to all creditors and bidders. IBBI data compiled by K V Sivaraman, an insolvency expert associated with Delhi-based AAA Insolvency Professionals, show that penalties were imposed on five occasions between April and now. IBBI cancelled the registration of Mukesh Mohan, an insolvency professional in a matter involving four corporate debtors - JEKPL Pvt Ltd, Carnation Auto India, Athena Demwe Power, and Tirupati Links. The apex insolvency body has debarred him from seeking a new registration for 10 years.