IBBI upholds disciplinary action against insolvency professional Rohit Mehra

This is a disciplinary order issued by the Insolvency and Bankruptcy Board of India (IBBI) regarding Mr. Rohit Ramesh Mehra, an Insolvency Professional, concerning his conduct during the Corporate Insolvency Resolution Processes (CIRP) of Reliance Big Private Limited and Reliance Infrastructure Consulting and Engineers Private Limited. It matters to citizens as it addresses regulatory oversight of professionals managing insolvency proceedings and the protection of creditor interests.

Who it concerns: Mr. Rohit Ramesh Mehra (Insolvency Professional), the Insolvency and Bankruptcy Board of India (IBBI), the Disciplinary Committee, and the creditors of Reliance Big Private Limited (CD-1) and Reliance Infrastructure Consulting and Engineers Private Limited (CD-2).

What the Board found or ordered

• The Disciplinary Committee (DC) upheld the maintainability of the Show Cause Notice (SCN), rejecting the respondent's objection that prior inspection/investigation under Sections 218-219 of the Code was required, noting the SCN was issued under Section 219 read with Regulation 11(2) based on material on record.
• The DC found that the respondent failed to take steps despite information pointing towards potentially fraudulent initiation of proceedings, specifically noting that the original applicant, Committee of Creditors (CoC) composition, and Successful Resolution Applicant (SRA) were identical in both cases.
• The DC noted that the respondent relied on inconclusive transaction audit reports and failed to conduct independent due diligence or file applications under Section 19(2) to gather complete information from the corporate debtors.
• The DC observed that the valuations and approved resolution plans did not adequately account for significant Long-Term Capital Losses and unabsorbed depreciation (potential tax benefits) in the debtors' accounts, resulting in very low realization for creditors (0.35% for CD-1 and 0.1% for CD-2).
• The DC noted that audited financial statements for both debtors contained red flags, including qualified opinions due to non-provisioning of interest on borrowings and inability to comment on the realizability of investments.

Also in the document

• The respondent was provided a personal hearing via virtual mode on 01.07.2026 and an opportunity to submit additional submissions.
• The SCN was issued on 27.03.2026, and the respondent replied on 11.04.2026.
• The order is dated 06 August 2026.