IBBI finds insolvency professional conflicted in Orient Tourism case

Orient Tourism Private Limited. It matters to citizens as it details regulatory findings on professional misconduct, specifically regarding the unauthorized raising of interim finance and conflicts of interest.

Who it concerns: Shri Anurag Jain (Insolvency Professional), the Insolvency and Bankruptcy Board of India (IBBI) Disciplinary Committee, M/s. Orient Tourism Private Limited (Corporate Debtor), and the Committee of Creditors (CoC).

What the Board found or ordered

• The IBBI Disciplinary Committee disposed of a Show Cause Notice (SCN) alleging contraventions of the Insolvency and Bankruptcy Code (IBC) and related regulations by Shri Anurag Jain.
• The Committee found that Shri Anurag Jain failed to obtain prior specific approval from the Committee of Creditors (CoC) for raising interim finance of Rs. 1 crore from Resolve Support Services Private Limited, despite Section 28(1)(a) of the Code mandating such approval.
• It was found that Shri Anurag Jain is a director of Resolve Support Services Private Limited, the interim finance provider, creating a conflict of interest.
• The Committee noted that a substantial portion of the interim finance (Rs. 50 lakh) was utilized to pay CIRP costs, including Rs. 33.34 lakh to Shri Anurag Jain as RP fees and Rs. 11.10 lakh to Mr. Vishal Jain (a director of the finance provider) as legal support fees.
• The NCLAT order dated 14.01.2026, cited in the document, observed that the Loan Agreement was executed unilaterally by the RP without formal CoC approval on specific terms, and that the arrangement lacked transparency.
• The IBBI formed a prima facie view that Shri Anurag Jain contravened Sections 25(2)(c) and 28(1)(a) of the Code, Regulations 31, 33, 34, and 34A of the CIRP Regulations, and Clauses 1, 2, 3, 5, and 14 of the Code of Conduct for IPs.

Also in the document

• The CoC initially expressed inability to contribute funds and advised the RP to seek interim finance at a maximum interest rate of 15% p.a., but did not approve the specific lender or terms.
• Mr. Vishal Jain, a director of the interim finance provider, was also appointed as the legal professional and received fees from the interim finance corpus.
• Shri Anurag Jain submitted that the CoC had fixed the terms of the finance, making the identity of the financier irrelevant, and that he was merely performing a ministerial act by executing the agreement.