IBBI: Complaints, Grievances and Insolvency Professionals

The Insolvency and Bankruptcy Board of India, the IBBI, is the regulator behind the insolvency system. It does not decide insolvency cases; that is the NCLT's job. Instead, it registers and supervises the people and bodies that run the process: insolvency professionals who act as resolution professionals and liquidators, insolvency professional agencies, information utilities that record debts and defaults, and registered valuers. It also makes the regulations that govern how a CIRP, a liquidation or a personal insolvency is conducted.

For creditors, homebuyers, workers and promoters, the IBBI matters most when something goes wrong with the professional running the process. A resolution professional who ignores a claim, delays without reason, has a conflict of interest or charges unreasonable fees can be the subject of a complaint. For insolvency professionals, the IBBI is the authority that issues show cause notices and disciplinary orders. The IBBI's office is at 7th Floor, Mayur Bhawan, Shankar Market, Connaught Circus, New Delhi. This page explains how complaints work, what the IBBI can and cannot do, and how disciplinary proceedings and appeals run.

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IBBI at a glance

IBBI or NCLT: where should your grievance go?

This is the question we are asked most often. The NCLT decides disputes within an insolvency case: whether your claim should be admitted, whether a CoC decision is valid, whether a plan should be approved. If the resolution professional has rejected your claim, the remedy is usually an application to the NCLT under Section 60(5), which can order the claim to be admitted. The IBBI cannot.

The IBBI deals with the professional's conduct: whether they followed the regulations, acted with integrity, disclosed conflicts and charged fair fees. A complaint to the IBBI can lead to disciplinary action against the professional, but it does not by itself change decisions in the case. In many situations, both routes are relevant: an NCLT application to fix the problem in the case, and an IBBI complaint about the conduct that caused it. We advise on which to use and when. See filing a claim and committee of creditors.

How an IBBI complaint works

For insolvency professionals: responding to a show cause notice

A show cause notice from the IBBI is serious. Orders can include monetary penalties, suspension and, in grave cases, cancellation of registration. The notice usually follows an inspection or a complaint and lists specific alleged breaches, such as failure to verify claims properly, delay in holding CoC meetings, appointment of related parties as advisers, inadequate disclosure of fees, or failure to file avoidance applications.

A good reply addresses each allegation with documents: the timeline, the minutes, the advice obtained, the CoC's approvals and the reasons for each decision. Where a mistake was made, it often helps to explain what was done to correct it. Professionals have a right to a personal hearing before the disciplinary committee. If an adverse order is passed, an appeal lies to the NCLAT under Section 220(7). The right of appeal works both ways: in a 2026 decision, the NCLAT held that a complainant whose complaint started the proceedings is also a person aggrieved, and may appeal a final order, including on the ground that the penalty was too lenient. We act for insolvency professionals at each stage: reply, hearing and appeal.

Common complaints and the likely route

Time and typical cost

Our fees are agreed in writing at the start, stage by stage. They are not linked to the outcome.

Documents usually needed

Laws that apply

How we work on IBBI matters

We are a litigation practice led by Advocate BK Singh, with offices in Dwarka (New Delhi) and Vaishali (Ghaziabad). For IBBI matters, this is what you can expect:

• Right forum first: we tell you whether your problem needs the NCLT, the IBBI or both.
• Specific complaints: tied to the regulation breached and backed by documents.
• Defence for professionals: replies to show cause notices, hearings and appeals.
• Close to the IBBI: our Delhi office makes personal hearings easy to attend.
• Written fee terms: agreed stage by stage, never linked to the outcome.

Mistakes we see in IBBI matters

Information utilities and records of default

Information utilities store information about debts and defaults submitted by creditors and authenticated by debtors. Under the 2026 amendment, a record of default from an information utility is treated as sufficient proof of default in a Section 7 application, which makes the record important for lenders. If a debtor disputes a record, the utility's process for authentication and dispute applies. The IBBI regulates information utilities, and complaints about how a utility handled a record can be raised with it. For lenders, the practical step is to file debts with the utility early and follow up on authentication. See Section 7 petitions.

Registered valuers in insolvency

In a CIRP, two registered valuers determine the fair value and liquidation value of the corporate debtor. These figures shape what dissenting financial creditors and operational creditors must receive under a plan, and they influence bidders. If the two valuations differ widely, the regulations allow a third valuer to be appointed. Stakeholders who believe a valuation is flawed can raise it with the CoC and, where the process was not followed, with the NCLT. Complaints about a valuer's professional conduct go to the IBBI, which regulates registered valuers and their organisations.