Inspection And Investigation Regulations - 2017 Notified [Read Notification]

The Insolvency and Bankruptcy Board of India, in the exercise of its powers under the Insolvency and Bankruptcy Code 2016, has notified the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017.

Under these regulations, the board shall have the power to conduct inspections of records of such service providers as may be decided by it, in order to ensure that records are being maintained by the service provider and to ascertain that the services are not unfit or ineligible and fulfill all obligations under the regulations.

The regulations also lay down the procedure of inspection, such as the requirement of a notice at least 10 days prior to the commencement of the inspection.

However, this requirement can be done away with in certain circumstances like when the notice would cause undue delay, or would lead to alteration, falsification, etc of records. The regulations also have provisions for the submission of an interim and a final report of inspection.

Further, the regulations also provide for investigation of a service provider under Section 218 of the code. The board can direct the investigating authority to conduct investigation of the affairs of the service provider.

Procedure for conducting the investigation, such as requirement of a notice 10 days prior to the commencement of the investigation, has been provided for in the Regulations. However, this too can be done away with in certain circumstances. Provisions for the submission of an interim and final investigation report also find mention in the Regulations.

The Regulations also provides for the issuance of a show-cause notice and the requirements for a valid show-cause notice.