IBBI clears insolvency professional after SFIO finds no assets in subsidiaries

It matters to citizens as it details regulatory findings regarding the conduct of a professional appointed to manage the liquidation of a corporate debtor, specifically concerning the protection of assets and compliance with statutory duties.

Who it concerns: Mr. Sumit Binani (Insolvency Professional/Liquidator), Gujarat NRE Coke Limited (Corporate Debtor), Hunter Valley Coal Pvt. Ltd. and Manor Dealcom Pvt. Ltd. (Subsidiaries), and the Insolvency and Bankruptcy Board of India (IBBI).

What the Board found or ordered

• The IBBI Disciplinary Committee disposed of Show Cause Notice No. COMP-11012/1/2025-IBBI-1852/1808 dated 02.12.2025.
• The Board formed a prima facie view that Mr. Sumit Binani contravened Sections 35(1)(b) and (d), 208(2)(a) and (e) of the Insolvency and Bankruptcy Code, 2016, and Regulation 7(2)(a) and (h) of the IBBI (Insolvency Professionals) Regulations, 2016.
• The alleged contravention involved failing to protect the interests of the Corporate Debtor regarding its wholly owned subsidiaries, Hunter Valley Coal Pvt. Ltd. and Manor Dealcom Pvt. Ltd.
• The Board observed that Mr. Sumit Binani failed to attend the annual general meetings of the two subsidiaries and did not authorize a change in directorships that occurred on 15.05.2023 during the liquidation process.
• Mr. Sumit Binani submitted that the subsidiaries were non-operational with no tangible assets, and he did not attend AGMs because he did not receive notices and deemed them unnecessary for non-operating entities under liquidation.
• The Disciplinary Committee noted that Mr. Sumit Binani initially failed to furnish audited financial statements of the subsidiaries for FY 2019-20 to 2023-24, but eventually furnished them on 13.08.2026.

Also in the document

• The investigation was initiated based on a complaint from the Special Forensic Investigation Office (SFIO) regarding irregularities in the affairs of the Corporate Debtor.
• Mr. Sumit Binani claimed he attempted 16 separate auctions for the sale of investments in the subsidiaries at reduced reserve prices but received no expressions of interest.
• The SFIO investigation report reportedly confirmed that the subsidiaries had no fixed assets, debtors, inventory, or operating income, reflecting only internal group investments in unlisted entities.