IBBI has asked insolvency professionals to flag possible misuse of the bankruptcy process, including suspicious related-party transactions and very low creditor recoveries. The IBBI said that it has received information from law enforcement and regulatory agencies that the Insolvency and Bankruptcy Code, 2016 is also being used to dodge taxes, escape investigations, closure or merger of companies without regulatory scrutiny, or monetising and ring-fencing assets.
The board listed six indicators to be alert for: very low recoveries for creditors without proper valuation, a single non-bank creditor dominating the committee of creditors (CoC), a cluster of related companies with common promoters, addresses, directors, or inter-lending taken into bankruptcy process; a common resolution applicant recurring across connected corporate debtors, linkage of corporate debtor or its group to fraud probes by another regulator, and suspicious loans between group companies.
Dheeraj Mishra is a Principal Correspondent with the Business Bureau of The Indian Express. He plays a critical role in covering India's massive infrastructure sectors, providing in-depth reporting on the connectivity lifelines of the nation. Expertise & Focus Areas: Mishra’s journalism is focused on two of the country's most capital-intensive and public-facing ministries:
Ministry of Railways: Tracking the operations, safety, and development of India's vast railway network.
Ministry of Road Transport & Highways: Covering policy decisions, infrastructure projects, and highway development.
What sets Mishra apart is his rigorous use of the Right to Information (RTI) Actas a primary tool for news gathering. By relying on official data and government records, he ensures a high degree of accuracy and trustworthiness in his reporting. This data-driven approach has resulted in numerous impactful reports that hold public institutions accountable and bring transparency to government operations. Find all stories by Dheeraj Mishra here
