NEW DELHI: Insolvency and Bankruptcy Board of India (IBBI) has cancelled the registration of resolution professional Chandra Prakash Jain after an ED investigation into at least 10 corporate insolvency resolution processes (CIRPs) linked to Reliance Commercial Finance Ltd (RCFL) pointed to an alleged nexus among parties involved in the insolvency proceedings.The probe showed Jain had ignored “substantial financial red flags, interconnected transactions, auditor qualifications, missing records, low realisations, non-cooperation and the SEBI order” and failed to exercise the degree of due diligence required.Acting on the ED report, which was based on evidence seized during the searches conducted on actors and entities linked to Reliance Commercial Finance Limited, the IBBI said “the IBC (Insolvency and Bankruptcy Code) framework was being misused as a tool of tax avoidance, corporate restructuring with mala fide objectives, money laundering, etc.”The IBBI mentioned analyses of 10 CIRPs where Jain was the resolution professional and where the creditors, put together, got Rs 30 lakh against admitted claims totalling Rs 1,433 crore. The successful resolution applicant was Micro Capital Private Ltd. There was no comment from Reliance Anil Ambani Group.
