IBBI suspends Jeypore Sugar's former liquidator for three years over Rs 70 lakh transfer
The IBBI has suspended the registration of the insolvency professional who was liquidator of The Jeypore Sugar Company for three years, finding he moved Rs 70 lakh of its funds into his own name.
Key points
- The IBBI's Disciplinary Committee suspended an insolvency professional's registration for three years by an order dated 9 November 2026.
- The IBBI found he moved Rs 70 lakh of The Jeypore Sugar Company's funds into a fixed deposit in his name after he was replaced as liquidator.
- The order takes effect 30 days after issue; committees of companies he serves must take steps to replace him.
The Insolvency and Bankruptcy Board of India (IBBI) has suspended for three years the registration of an insolvency professional who served as liquidator of The Jeypore Sugar Company Limited. In an order dated 9 November 2026, the IBBI's Disciplinary Committee found that he moved Rs 70 lakh of the company's funds into a fixed deposit in his own name after he had been replaced.
What Happened
The National Company Law Tribunal (NCLT), Chennai Bench, admitted the company into insolvency on 25 February 2019 on an application by IDBI Bank and ordered its liquidation on 29 May 2020, with the professional as liquidator. The tribunal replaced him on 1 July 2022. IDBI Bank complained to the IBBI on 18 January 2024, and the IBBI ordered an investigation.
The committee found that he transferred Rs 70 lakh of the company's money to a fixed deposit in his name on 5 July 2022, after being replaced, and gave the investigating authority an incorrect account of when the tribunal's order was uploaded. It found he kept the company's Rayagada property out of the liquidation estate, an asset earlier valued at over Rs 1,000 crore, about five times the total realisable value of Rs 217.52 crore shown for the other assets, and revalued assets without appointing two registered valuers for each class.
The committee also found that he moved a scheme of compromise before the tribunal without the consent of secured creditors required under the Companies Act, did not preserve records or cooperate with the investigation, and did not file relationship disclosures for marketing consultants he engaged. It rejected his objections, including that IDBI Bank had no standing to complain.
What It Means
The suspension is a completed regulatory action of the IBBI and may be appealed. The order takes effect 30 days after it was issued, and he cannot continue his existing assignments.
The order is being sent to the committees of creditors and stakeholders' consultation committees of every company where he serves, which must take steps to replace him. For the creditors of The Jeypore Sugar Company, the committee said his conduct deprived stakeholders of a complete and reliable picture of the assets on which the liquidation depended.
Source: IBBI disciplinary order
Sources & Citations
- IBBI disciplinary order — Insolvency and Bankruptcy Board of India