IBBI dismisses criminal complaint by insolvency professional against board officials

This is a disciplinary order issued by the Insolvency and Bankruptcy Board of India (IBBI) on 09 November 2026, disposing of a Show Cause Notice against Insolvency Professional Shri Venkata Sivakumar regarding his conduct during the liquidation of The Jeypore Sugar Company Limited. It matters to citizens as it details the regulatory enforcement actions and procedural findings concerning professional misconduct in insolvency proceedings.

Who it concerns: The order concerns Shri Venkata Sivakumar (Insolvency Professional), the Insolvency and Bankruptcy Board of India (IBBI), IDBI Bank Limited (Complainant/Secured Creditor), and The Jeypore Sugar Company Limited (Corporate Debtor).

What the Board found or ordered

• The Disciplinary Committee (DC) disposed of Show Cause Notice (SCN) No. IBBI/C/2024/01059/1812/1355 dated 11.09.2025.
• The DC rejected the preliminary objection regarding IDBI Bank's locus standi, ruling that as a secured creditor, it is a 'stakeholder' under the Code and has the right to file a complaint.
• The DC rejected the objection that the Board failed to record reasons before ordering the investigation, stating that Section 218(1) of the IBC does not require separate recording of reasons when a complaint is received.
• The DC found that the filing of criminal and contempt proceedings by Shri Venkata Sivakumar against Board officials did not establish bias or malafide intent in the disciplinary proceedings.
• The DC examined judicial orders relied upon by Shri Venkata Sivakumar, including Supreme Court Civil Appeal No. 1614 of 2023, and observed that none of them stay, bar, or bear on the present disciplinary proceedings.
• The DC noted that Shri Venkata Sivakumar was non-cooperative during the investigation, failing to provide specific replies to allegations despite multiple opportunities.

Also in the document

• The Supreme Court order in Civil Appeal No. 1614 of 2023 set aside adverse findings against the IP only in view of his statement that he did not wish to continue as Liquidator, without going into the merits.
• A criminal complaint filed by Shri Venkata Sivakumar against Board officials for not recording reasons for the investigation was dismissed by the Metropolitan Magistrate on 01.04.2026.
• The DC noted that the Investigating Authority provided the E&Y forensic audit report to Shri Venkata Sivakumar on 16.12.2024, and he submitted comments on it on 23.01.2025.