NEW DELHI | MUMBAI: The Insolvency and Bankruptcy Board of India (IBBI) is looking into a complaint that some professional service firms were acting as insolvency resolution professionals (IRPs) to help banks manage and restructure insolvent companies.
Under law, professional entities can’t enrol themselves as an insolvency professional or become a member of another agency registered with the IBBI to do the job. According to an official aware of the matter, an independent IRP had written to the board accusing some firms of breaking this rule.
The complainant alleged that invoices were raised by these firms and not the insolvency professionals, who in most cases were employees of the firms, the official said.
There are abo…
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