IBBI disciplines insolvency professional over 14-month audit delay

This is a disciplinary order issued by the Insolvency and Bankruptcy Board of India (IBBI) regarding Mr. Mukul Kumar, an Insolvency Professional, for alleged violations of the Insolvency and Bankruptcy Code, 2016, and related regulations during the Corporate Insolvency Resolution Process (CIRP) of AMRL Hi-tech City Limited. It matters to citizens as it details regulatory enforcement actions against professionals responsible for managing corporate insolvency proceedings.

Who it concerns: Mr. Mukul Kumar (Insolvency Professional), the Insolvency and Bankruptcy Board of India (IBBI), the Disciplinary Committee, AMRL Hi-tech City Limited (Corporate Debtor), M/s. Swach Environment Private Limited (Complainant/Operational Creditor), and the suspended management/directors of the Corporate Debtor.

What the Board found or ordered

• The IBBI Disciplinary Committee disposed of a Show Cause Notice (SCN) issued to Mr. Mukul Kumar for contraventions of the Code, CIRP Regulations, and IP Regulations.
• The Committee found that Mr. Mukul Kumar failed to adhere to mandatory timelines under Regulation 35A of the CIRP Regulations for forming an opinion on avoidance transactions and filing Section 19(2) applications.
• It was observed that Mr. Mukul Kumar withdrew a previously filed Section 19(2) application despite continued non-cooperation by the suspended management and explicit directions from the Committee of Creditors (CoC) to initiate such proceedings.
• The Committee determined that the justification provided by Mr. Mukul Kumar for the delay (non-payment of fees to legal counsel) did not constitute a reasonable or valid justification for non-compliance with statutory duties.
• The order cites violations of Section 19(2) of the Code, Regulation 35A of the CIRP Regulations, and Clauses 13 and 14 of the Code of Conduct.

Also in the document

• The transaction auditor took 14 months to submit the draft transaction audit report, partly due to the suspended management's failure to provide necessary cooperation and documents.
• Mr. Mukul Kumar stated that the delay in filing a fresh Section 19(2) application was due to non-payment of fees to legal counsel.
• The suspended management directors attended CoC meetings while simultaneously contesting the Section 19(2) proceedings before the Adjudicating Authority (AA).
• Mr. Mukul Kumar availed the opportunity of a personal hearing before the Disciplinary Committee via virtual mode on 11.05.2026.