Insolvency regulator IBBI has slapped a penalty of Rs. 1 lakh on Dinkar T Venkatasubramanian, insolvency resolution professional (IRP) and partner at Ernst & Young LLP.
The move came after the Insolvency and Bankruptcy Board of India’s disciplinary committee took a “lenient” view of the violations to the IBC as regards the settlement of bills related to professional services rendered by Venkatasubramanian as an IRP in the JEKPL Pvt Ltd case.
The main issue before the Disciplinary Committee was whether an IRP can authorise a firm (in which he is a partner/director) to raise invoices for his professional fee on his behalf.
In this case, Venkatasubramanian had authorised Ernst & Young LLP to raise invoices for his “fees and other out of pocket expenses” in connection with the insolvency process of JEKPL.
The Disciplinary Committee concluded that the move was in violation of the IBC and its regulations.
It said a Limited Liability Partnership is independent of its partners.
Need for clarity
Aseem Chawla, Managing Partner, ASC Legal, observed that the order raises an important concern with regard to the professional practice regime of insolvency resolution.
“Whether, the objective is to institutionalise the framework of practice or whether only individual’s practice, this needs immediate clarity,” Chawla said.
via IBBI levies penalty on EY partner – NEWS – The Hindu BusinessLine
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