Sending out a strong message, Insolvency and Bankruptcy Board of India (IBBI) Chairperson MS Sahoo on Saturday said insolvency resolution professionals should not look for “ready-made solutions” and desist from overcharging for their services.
Against the backdrop of concerns about the conduct and independence of insolvency professionals in certain instances, he asserted that character plays a more important role in insolvency profession.
The professionals are key to insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) that provides for market-determined and time-bound resolution. “Don’t look for ready-made solutions (insolvency resolution) requires your full heart,” Sahoo told an insolvency professionals' conclave here. Emphasising that talent and character are the two key pillars for insolvency professionals, he said their role is is defined and cannot exceed the mandate.While mentioning about instances of the professionals charging high amounts for services, Sahoo urged them not to delegate, outsource, overcharge or engage related parties.
“Don't try to take Rs 14 crore from a default of Rs 2 crore” he said, adding that remuneration should be charged in a transparent manner. “His position is quite unique compared to other professions. It requires highest levels of integrity, reputation and character. Such responsibilities cannot be entrusted to people of doubtful integrity,” Sahoo noted.