Insolvency regulator sounds alarm over misuse of bankruptcy law; tells professionals to dig deeper

The circular listed several possible warning signs of misuse of the IBC framework that the IPs must watch out for. For example, if a single creditor (other than a bank or public financial institution) suddenly gets a company's debt transferred to them right before insolvency…

IBBI circular flags attempts to use insolvency proceedings to sidestep tax liabilities, investigations and regulatory scrutiny.