Ghaziabad: Insolvency and Bankruptcy Board of India (IBBI) has suspended the registration of Narender Kumar Sharma, insolvency professional (IP) for Indirapuram Habitat Centre Private Limited, for two years, holding that he breached provisions of the Insolvency and Bankruptcy Code, 2016.The board’s investigative agency filed a report highlighting allegations of conflict of interest and non-disclosure of relationship with a prospective resolution applicant (PRA), undertaking actions during the Corporate Insolvency Resolution Process (CIRP) without the approval of the Committee of Creditors (CoC), and inconsistent submissions before the investigative agency and disciplinary committee.“The DC, in exercise of the powers conferred under Section 220 of the Code read with Regulation 13 of the IBBI (Inspection and Investigation) Regulations, 2017, hereby cancels/suspends registration of Narender Kumar Sharma for a period of two years. During the suspension period, Sharma will be ineligible to continue with the present assignment ie, Indirapuram Habitat Centre Private Limited (IHCPL),” read a June 10 order from IBBI chairperson Ravi Mital.When TOI approached Sharma for a comment, he said, “At this point in time I have nothing to say in the matter.”Atul Rawat, an IHC buyer, said that Sharma and his wife are directors and shareholders of Daksh Compliance Management Private Limited (DCMPL), which had transferred Rs 12.5 lakh to M/s SP Construction. The latter company was a member of M/s ESWIN Infra Project Consortium, which was included in the final list of prospective resolution applicants (PRA) in the CIRP.“The transaction occurred while resolution plans were under active consideration, and Sharma did not disclose this relationship to stakeholders or his insolvency professional agency,” Rawat said.According to Rawat, the code of conduct requires that an IP shall disclose its relationship, if any, with the corporate debtor, other professionals engaged by him, financial creditors, interim finance providers, and prospective resolution applicants (PRA) to the insolvency professional agency of which he is a member, within the specified time, which Sharma failed to do.“This is tantamount to conflict of interest and non-disclosure of relationship with a prospective resolution applicant,” he added.Sharma was also found to have acted without proper CoC approval in GDA’s one-time settlement (OTS) scheme. On March 30 this year, Sharma was issued a show-cause notice, and a reply was submitted on April 20. On May 16, the disciplinary committee heard the matter virtually with Sharma present.It was found Sharma never obtained a legal opinion before proceeding, which is a requirement. The committee viewed this action as “lack of transparency.”Sharma’s submissions to the committee in the past were also deemed contradictory. In July last year, Sharma was fined Rs 2 lakh each in two cases by the disciplinary committee for failure to file an application on “fraudulent transaction in Indirapuram Habitat Centre.”IHC, the corporate debtor in the case, was incorporated in 2002. The property was sold to around 2,000 allottees, of which 300 were handed over their shops and commercial spaces.In 2006, IHC bought over 5 hectares from GDA under an agreement that 28% of the land would be used for commercial purposes, 27% for recreational use, and 45% for socio-cultural purposes. In July 2018, GDA sealed IHC after promoters defaulted on Rs 105 crore dues. IHC approached Allahabad High Court, after which a portion of IHC was unsealed on July 13, 2018, after a certain amount was paid to GDA.On Aug 22, 2019, the NCLT principl bench admitted the Insolvency and Bankruptcy Code, 2016 (Code) application to initiate the Corporate Insolvency Resolution Process (CIRP) of Indirapuram Habitat Centre Private Limited (CD). On Nov 16 the same year, Narender Kumar Sharma was appointed as the resolution professional (RP).Real estate investor Dimand Trimax had raised the insolvency bid against IHC under the Insolvency and Bankruptcy Code, 2016, for non-payment of Rs 32 crore dues.
