Insolvency regulator cancels IP registration of Manish Gupta after repeated contraventions
The Insolvency and Bankruptcy Board of India (IBBI) has cancelled the insolvency professional registration of Manish Gupta (registration number: IBBI/IPA-001/IP-P01131/2018-19/11826) due to his “repeated contraventions and not providing any reasons for being un-responsive to the communications of the Board and his continuous absence from proceedings as observed by the Adjudicating Authority (AA).”
Unprofessional Conduct Undermines Resolution Process
In its order, the regulator emphasized that Gupta’s unresponsive behavior raised serious concerns about his professionalism and fitness to handle insolvency assignments. The order stated, “If Insolvency Professional (IP) becomes unresponsive to the various authorities and stakeholders in the eco system of Insolvency Resolution Process, it will lead to derailment of the entire resolution process of the corporate debtor for which the IP is appointed.”
Specific Instances of Misconduct
The IBBI found Gupta guilty of unprofessional conduct in two specific cases:
- Horizon Concept Private Limited: As the interim resolution professional, Gupta failed to constitute or convene the Committee of Creditors (CoC), neglected to respond to creditor claims, and ignored both the investigating authority’s complaints and the Adjudicating Authority’s summons.
- Vardhman Buildtech Pvt Ltd: In this case, Gupta served initially as the interim resolution professional and later as the resolution professional. He displayed disregard for regulations by failing to submit required forms (including Form E for late fee payment) and neglecting to cooperate with inspection procedures.
Failure to Comply with Reporting Requirements
The IBBI Disciplinary Committee highlighted the critical role of form submissions in ensuring transparency and accountability in the insolvency resolution process. Gupta’s repeated failure to file mandatory forms under Regulation 40B of the CIRP Regulations hindered the Board’s ability to monitor his performance and the progress of the proceedings.
Consequences of Unprofessional Conduct
The Board’s firm action against Manish Gupta serves as a strong deterrent against non-compliance by insolvency professionals. The order reinforces the importance of professionalism, responsiveness, and adherence to regulations in upholding the integrity and effectiveness of the insolvency resolution framework.
Also See: Resolution professional Poonam Basak suspended for 3 years for undermining CIRP of Kings Electronics
