In exercise of the powers conferred under section 196, 217 read with section 240 of the Insolvency and Bankruptcy

**Report: Analysis of the Insolvency and Bankruptcy Board of India Grievance and Complaint Handling Procedure Amendment Regulations, 2022** **1. Executive Summary:** This report analyzes the Insolvency and Bankruptcy Board of India (IBBI) Grievance and Complaint Handling Procedure Amendment Regulations, 2022, as notified on June 14, 2022. The amendment primarily focuses on streamlining the grievance and complaint handling process by shortening timelines for various actions and introducing a mechanism for Insolvency Professional Agencies (IPAs) to handle grievances against their members. The key findings indicate a shift towards faster resolution of grievances and a decentralized approach involving IPAs. **2. Introduction:** This report aims to provide a comprehensive analysis of the Insolvency and Bankruptcy Board of India Grievance and Complaint Handling Procedure Amendment Regulations, 2022, based solely on the provided policy text. The report outlines the key changes introduced, the rationale behind them (as inferred from the text), and the potential impact on stakeholders. **3. Policy Overview:** * This report analyzes an *amendment* to the Insolvency and Bankruptcy Board of India Grievance and Complaint Handling Procedure Regulations, 2017. * Core Objective(s) as inferred from the text: * To expedite the resolution of grievances and complaints related to insolvency and bankruptcy proceedings. * To enhance the efficiency of the grievance handling mechanism. * To involve Insolvency Professional Agencies (IPAs) in the resolution of grievances against their members. **4. Background and Rationale:** The amendment seems designed to address perceived inefficiencies in the existing Grievance and Complaint Handling Procedure Regulations, 2017. Specifically, the shortening of timelines suggests a desire to expedite the resolution process. The introduction of IPA involvement indicates a move towards a more decentralized and potentially specialized approach to handling grievances against insolvency professionals. These changes likely aim to improve the overall effectiveness and responsiveness of the grievance redressal system under the Insolvency and Bankruptcy Code (IBC). **5. Key Provisions / Changes:** The Insolvency and Bankruptcy Board of India Grievance and Complaint Handling Procedure Amendment Regulations, 2022 introduces the following key changes: * **Regulation 3 (Amendment to Regulation 3 of the Principal Regulations):** * **Change:** Sub-regulation 5 of Regulation 3 in the principal regulations is substituted. * **New Provision:** A grievance or complaint shall be filed with the Board on its dedicated portal www.ibbi.gov.in. * **Effect:** Clarifies the mode of filing a grievance or complaint. * **Regulation 6 (Amendment to Regulation 6 of the Principal Regulations):** * **Change i:** The short title regarding the Disposal of grievance is amended. * **New Provision:** The disposal of grievance is to be done by the Board * **Effect:** Clarifies who will be incharge of the disposal of grievance. * **Change ii:** Sub-regulation 2 is amended. * Specific part changed: The word "fifteen" is replaced with the word "seven". A proviso is also added. * New Provision: The timeframe for submitting information and records is reduced from fifteen days to seven days. An additional seven days may be granted by the Board on request. * Effect: Shortens the initial timeline for submitting information, potentially speeding up the process. The provision for an extension offers some flexibility. * **Change iii:** Sub-regulation 3 is amended. * Specific part changed: The words "fortyfive" is replaced with the word "thirty". * New Provision: Time for disposal is changed from forty-five days to thirty days. * Effect: A shorter period allocated for disposal * **Change iv:** Sub-regulation 4 is amended. * Specific part changed: The words "fortyfive" is replaced with the word "thirty". * New Provision: Time for disposal is changed from forty-five days to thirty days. * Effect: A shorter period allocated for disposal. * **New Regulation 6A (Insertion of New Regulation 6A):** * **New Provision:** Allows the Board to forward grievances against insolvency professionals to their respective IPAs for disposal. The IPA must dispose of the grievance according to its byelaws and inform the Board within thirty days of receipt. * **Effect:** Introduces a decentralized mechanism for handling grievances against insolvency professionals, potentially leveraging the expertise and internal processes of the IPAs. * **Regulation 7 (Amendment to Regulation 7 of the Principal Regulations):** * **Change i:** Sub-regulation 2 is amended. * Specific part changed: The word "fifteen" is replaced with the word "seven". A proviso is also added. * New Provision: The timeframe for submitting information and records is reduced from fifteen days to seven days. An additional seven days may be granted by the Board on request. * Effect: Shortens the initial timeline for submitting information, potentially speeding up the process. The provision for an extension offers some flexibility. * **Change ii:** Sub-regulation 3 is amended. * New Provision: The Board shall investigate the information and records and form an opinion whether there exists a prima facie case within thirty days of the receipt of the complaint. * Effect: Shortens the initial timeline for investigation and forming an opinion. * **Change iii:** Sub-regulation 5 is amended. * New Provision: after the words of such decision, the words within thirty days shall be inserted * Effect: This adds a time limit to the original rule * **Change iv:** Sub-regulation 7 is amended. * New Provision: Where the Board is of the opinion that there exists a prima facie case, it may issue a show cause notice under regulation 11 of the Insolvency and Bankruptcy Board of India Inspection and Investigation Regulations, 2017 or order an investigation under Chapter III of Insolvency and Bankruptcy Board of India Inspection and Investigation Regulations, 2017. * Effect: This adds to the ways a case can continue. **6. Target Audience and Stakeholders:** Based on the text, the primary target audience and stakeholders include: * Insolvency Professionals (IPs) - Specifically those who are members of an IPA. * Insolvency Professional Agencies (IPAs) * Individuals or entities who have grievances or complaints related to insolvency and bankruptcy processes. * The Insolvency and Bankruptcy Board of India (IBBI). **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Insolvency and Bankruptcy Board of India (IBBI) is the primary responsible body. IPAs also play a role in handling grievances against their members. * **Timelines:** The amendment specifies several timelines, including: * Seven days for submitting information and records (with a possible extension of seven days). * Thirty days for IPAs to dispose of grievances after receiving them. * Thirty days for the Board to investigate and form a prima facie opinion. * **Specifically related to the changes:** The shorter timelines are a critical implementation aspect. IPAs will need to establish processes to handle grievances within the mandated 30-day period. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of these changes include: * Faster resolution of grievances and complaints. * Increased efficiency in the overall grievance handling process. * Greater accountability of Insolvency Professionals through IPA involvement. * Reduced burden on the IBBI by delegating certain grievance handling responsibilities to IPAs. * The reduction in timelines will likely put pressure on all parties involved to act more quickly and efficiently. **9. Conclusion:** The Insolvency and Bankruptcy Board of India Grievance and Complaint Handling Procedure Amendment Regulations, 2022, represent a significant step towards streamlining and improving the grievance redressal mechanism under the IBC. By shortening timelines and involving IPAs, the amendment aims to create a more efficient and responsive system for addressing grievances related to insolvency and bankruptcy proceedings. The changes are likely to have a positive impact on all stakeholders by ensuring quicker resolution of issues and promoting greater accountability.

Key Entities Referenced