IBBI Issues Circular Directing Insolvency Professionals To File Forms To Monitor Voluntary Liquidation Processes On Electronic Platform Only

The circular provides that the Insolvency Professionals shall access the platform with a unique username and password provided by the IBBI and upload/submit the Forms, along with relevant information and records, after affixing DSC or e-signing.

It also emphasized upon that the timely filing of complete and accurate information along with records is the sole responsibility of the Insolvency Professional.

IBBI has issued the following directions for the Insolvency Professionals to file the forms on the electronic platform only:

• within the prescribed timeline for all cases where a voluntary liquidation process has commenced on or after the date of issuance of this circular.
• for the ongoing cases: in which no application for dissolution of the corporate person has been filed, the IP shall file the following forms latest by 30th September 2024:
1. Form VL 1 for all cases
2. Form VL 2 for cases where the process is delayed or the liquidator is replaced, as the case may be.
• for cases where an application for dissolution or withdrawal/suspension of the voluntary liquidation process of the CP has been filed with AA, shall file forms VL1, VL2 and VL3 latest by 30th September 2024.
• for cases where dissolution of the CP or withdrawal / suspension of voluntary liquidation process has been ordered by AA, shall file forms VL 1, VL 3, and VL 4 latest by 30th September 2024.

The Board has clarified that Insolvency Professionals who fail to comply with the provisions of the Code and the related Regulations shall be held accountable as per the applicable provisions for:

(i) failure to submit the required Forms along with the relevant information and records,

(ii) submitting inaccurate or incomplete information and/or records in or along with a Form.

Circular No. IBBI/LIQ/74/2024

Click Here To Read/Download Circular