The Insolvency and Bankruptcy Code, 2016
IBBI (Inspection and Investigation Regulations) Regulations, 2017
Chapter IV – Consideration of Report
Regulation 11: Consideration of Report.
11. (1) The Board shall consider the inspection report received under regulation 6 or investigation report received under regulation 10, as the case may be, expeditiously.
(2) If the Board, after consideration of the report under sub-regulation (1) 1[or on the basis of material otherwise available on record], is of the prima facie opinion that sufficient cause exists to take actions under section 220 or sub-section (2) of section 236, it shall issue a show-cause notice2 in accordance with regulation 12 to the service provider or an associated person and in any other case, close the inspection or investigation, as the case may be.
References
1. Inserted by IBBI (Inspection and Investigation) (Amendment) Regulations, 2022 vide Notification No. IBBI/2022-23/GN/REG087 dated 14th June, 2022, w.e.f. 14.06.2022.
2. In case the assignment is undertaken by the IP, which is an IPE, the show-cause notice under regulation 11 of the IBBI (Inspection and Investigation) Regulations, 2017 shall be issued to:
(a) its partner or director, as the case may be, who is an IP and was authorised to sign and act on behalf of it for the respective assignment; and/or
(b) the IPE if in the opinion of the Board, there are either repeated instances of contravention against one or more partners or directors of the IPE or instance of systemic failure on the part of such IPE.-Refer IBBI Circular IBBI/IPE/64/2024 dated 01.02.2024.
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