SFIO has received 8 complaints regarding violation of IBC provisions: Govt

Serious Fraud Investigation Office (SFIO) has received eight complaints regarding violation of various provisions of the insolvency law, Union minister Rao Inderjit Singh told Lok Sabha on Monday.

He did not provide specific details.

The Insolvency and Bankruptcy Code (IBC) provides a market-linked framework for resolution of stressed assets and it came into force in 2016.

"As per information available, Directorate of Enforcement has received one complaint against an RP of one CIRP, CBI has received one complaint regarding abuse of process in one CIRP matter and SFIO has received 8 (eight) complaints regarding violation of various provisions of the IBC," Singh, who is Minister of State for Corporate Affairs, said in a written reply.

CIRP refers to Corporate Insolvency Resolution Process and RP is Resolution Professional.

The Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations, 2017 enable stakeholders to file a grievance or a complaint against service providers under the IBC. Besides, IBBI receives complaints and grievances from Centralised Public Grievance Redress and Monitoring System (CPGRAM), Prime Minister's Office, Ministry of Corporate Affairs and other authorities.

"Till 30th January, 2022, the IBBI had received 5,782 such complaints and grievances, of which 5,552 have been disposed after examination," Singh said.

He was responding to a query on whether the ministry or agencies such as ED, CBI, CVC have received any complaints regarding violation of laws by defaulters or consultancies by misuse of IBC.

To a question on whether the ministry has taken cognisance of NCLT (National Company Law Tribunal) taking note of disproportionate haircuts by lenders to companies using the IBC to settle large debts, the minister said realisation by creditors through CIRP is market driven and is dependent on quality of assets at the time of its resolution.

"As of 31st December, 2021, 457 companies have been resolved under the Code so far. The resolution plans for 444 companies for which data is available, have yielded realisable value of Rs 2.50 lakh crore for Financial Creditors (FCs) against total admitted claims of Rs. 7.54 lakh crore," he added.