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Insolvency Professionals Not Allowed to Outsource Responsibilities: IBBI
January 04, 2018
Identifying an operational loophole in the code, the Insolvency and Bankruptcy board of India (IBBI) has barred the Insolvency professionals (IP) to outsource their duties.
In a recent circular, IBBI, which is responsible for the framework that handles loan-recovery proceedings said that IPs who are appointed to help with the recovery of potentially 10 lakh crores of bad loans are now barred from outsourcing their responsibilities and shall also “not require any certificate from another person certifying the eligibility of a resolution applicant”.
IBBI said that some IPs were reported to be asking a certificate from prospective applicants for the resolution process.
