IBBI Disciplinary Order Cancelling IP Registration: Patterned CIRPs, Weak Valuation & Voluntary Liquidation Irregularities

The Insolvency and Bankruptcy Board of India, acting through its Disciplinary Committee (DC), has passed a stringent order against an Insolvency Professional, cancelling his registration and permanently prohibiting him from undertaking any assignment under the Insolvency and Bankruptcy Code, 2016 (IBC). The order, issued in Order No. IBBI/DC/329/2026 dated 03 July 2026, comes into force 30 days from the date of issuance.

This action is based on two separate show cause notices, covering:

  • His role as authorised partner/signatory of an Insolvency Professional Entity (IPE) acting as IRP/RP in multiple CIRPs; and
  • His conduct as liquidator in a voluntary liquidation process.

The DC identified a systemic pattern in eleven CIRPs and one voluntary liquidation process, and ultimately recorded breaches of several provisions of the IBC, the respective Regulations, the Code of Conduct, and IBBI circulars. The cumulative findings led to the cancellation of registration and a complete bar on future IBC assignments.

1. Procedural Background of the Disciplinary Proceedings

1.1 Origin of SCN-1: CIRP of M/s Accura Productions Pvt. Ltd (CD-8)

  • The CIRP of M/s Accura Productions Pvt. Ltd (CD-8) was admitted by the NCLT, Mumbai Bench, on 19.07.2024 under Section 7 of the IBC on an application filed by Reliance Commercial Finance Limited.
  • Truue IPE LLP (Reg. No. IBBI/IPE-0151/IPA-1/2023-24/50052) was appointed as IRP and later confirmed as RP.
  • The concerned Insolvency Professional, Mr. Chandra Prakash Jain, functioned as the authorised partner/authorised signatory of the IPE.
  • On the basis of inspection and material on record, the Board issued SCN-1 on 30.09.2025 alleging contraventions in the conduct of this CIRP. The IP responded on 15.10.2025.

1.2 Origin of SCN-2: Complaint in Voluntary Liquidation & Cluster of CIRPs

  • A complaint was received in relation to a voluntary liquidation process of Transmissions International India Pvt. Ltd (CD-12), where Mr. Jain was appointed as liquidator on 18.09.2024 (voluntary liquidation commenced on 22.02.2024).
  • The complaint and subsequent correspondence led the Board to examine additional material supplied by Mr. Jain in January 2026.
  • During this examination, the Board flagged remarkable similarities across ten CIRPs (CD-1 to CD-10) and one additional CIRP Triumvirate Sorority Private Limited (CD-11), where Truue IPE LLP acted as IRP/RP and Mr. Jain signed/acted on its behalf.
  • Prima facie, these matters indicated irregularities in both initiation and conduct of insolvency processes.
  • Based on these observations and the complaint, SCN-2 dated 30.03.2026 was issued; Mr. Jain replied on 06.05.2026.

1.3 Hearing Before the Disciplinary Committee

  • Both show cause notices and replies were placed before the DC.
  • Mr. Jain was heard through virtual mode on 18.06.2026.
  • After analysing the full record, the DC concluded that the professional lapses were material, repeated and systemic, justifying the harshest sanction under Section 220 of the IBC.

2. Key Findings in SCN-1: CIRP of Accura Productions Pvt. Ltd (CD-8)

2.1 Non-disclosure of Carry Forward Losses in Form H

Regulatory context:
Regulation 39(4) of the CIRP Regulations requires the Resolution Professional to submit the CoC-approved resolution plan to the Adjudicating Authority along with Form H, which is a compliance certificate. Form H includes a specific clause requiring disclosure of income-tax losses carried forward under Section 79(2)(c) of the Income-tax Act, 1961.

Facts noted by DC:

  • At the 8th CoC meeting held on 24.01.2025, Mr. Jain informed the CoC that CD-8 had carried forward losses of approximately Rs.581.80 crore in its books, which “might give substantial tax benefits in future to the PRA”.
  • However, in Form H submitted to the AA, the field relating to carry forward income-tax losses was filled as “Nil”.
  • Form H also carried Mr. Jain’s declaration that nothing material had been concealed.

Defence by the IP:

  • Mr.