IBBI suspends license of decision skilled dealing with 3C Firm affairs

In a landmark judgment, the Insolvency and Chapter Board of India (IBBI) suspended the license of a decision skilled dealing with the affairs of Granite Gate Properties Personal Restricted, a subsidiary of The 3C Firm. In its 10-page order, the board states the 4 contraventions by the skilled, Chandra Prakash. In January 2019, the NCLT’s Principal Bench admitted an utility beneath the Insolvency and Chapter Code for initiating the insolvency decision technique of Granite Gate Properties. The bench appointed Prakash as a decision skilled (RP).
 
Later, Prakash appointed Delhi-based Ibay Capital to supply skilled help providers. Nevertheless, it was later found that the corporate was associated to him. The board in its order states that it’s evident from the info and supporting paperwork that Prakash knowingly and intentionally hid the truth that “Ibay Capital is a associated occasion”.
 
Additional, it says, he intentionally didn’t cooperate with the inspecting authority with a purpose to forestall it from discovering the nexus between him and Ibay Capital. “Therefore, participating a associated entity will not be solely unjustified but additionally malafide,” the order mentions.
 
The board additionally says that Prakash had appointed iVAS Companions for ascertaining the honest worth and liquidation worth of the belongings of the Granite Gate. It’s, nonetheless, noticed that charges of the iVas companions was not ratified by the CoC (Committee of Collectors).
 
“His [Prakash] conduct of appointing valuers with out ratification of charges by the CoC is in violation of regulation 34 of CIRP Regulation which offers that CoC shall repair the bills to be incurred by the RP and the bills shall represent IRPC,” it states.
 
The order says that Prakash had neither disclosed the appointment of his brother by Ibay Capital earlier than the CoC nor made relationship disclosure of the engagement of Ibay Capital on the web site of the IPA (Insolvency Professionals Companies). Additional, the valuation report was submitted by iVas Companions whose appointment or payment was not authorized or ratified by the CoC.
 
“Parkash has additionally didn’t take applicable motion in opposition to Gravity for its inaction by way of cost of dues of water prices,” it states.
 
The board has additionally taken into consideration a grievance from the residents of Lotus Panache, a residential society of The 3C Firm. The order states that the erstwhile decision skilled entered into an settlement with Gravity Facility Administration Options (Gravity) for the upkeep of the whole resident facet of the challenge in addition to for cost of electrical energy and water prices.
 
Nevertheless, the residents have alleged that an quantity of round Rs 2 crore out of cash collected by Gravity for upkeep, electrical energy, and water prices had been invested within the under-construction challenge. Prakash additionally submitted to the board that the cash had certainly been diverted by Gravity, however he denied that the diverted cash had been utilised in an under-construction challenge.