Acting tough on an erring insolvency professional (IP), the Insolvency and Bankruptcy Board of India (IBBI) has cancelled the IP registration of Bhavna Sanjay Ruia, declaring her as not “fit and proper” to continue as an IP.
The IBBI has also debarred Ruia from seeking fresh registration as an IP or providing any service under Insolvency and Bankruptcy Code (IBC) for 10 years.
This move comes after IBBI’s Disciplinary Committee (DC) concluded that Ruia, who is enrolled as a professional member of ICSI Institute of Insolvency Professionals, had devised a conspiracy with her husband and “seriously compromised her independence, impartiality and integrity”.
She consented to take up 15 assignments simultaneously, much beyond her capacity, putting the life of 15 corporate debtors at risk, according to IBBI Wholetime Member Mukulita Vijayawargiya, who issued the cancellation order. IBBI’s Disciplinary Committee has concluded that Ruia had repeated the same contravention — for which she was suspended in May last year — in the Corporate Insolvency Resolution Process (CIRP) of 15 corporate debtors this time round.
“Fifteen assignments at one go from one source for an IP having absolutely zero experience establishes that the considerations were something other than merits and there was a deep-rooted conspiracy to bleed the ailing corporate debtors for the benefit of Ruia family,” the IBBI concluded.
If the conspiracy had materialised, Ruia would have acted as IRP/RP of CIRPs of 15 corporate debtors and would have earned a professional fee of ₹50 crore at one go, the IBBI said.
Source: Business Line, February 25, 2019