IBC--Fee Structure

Revised Fee Structure by Insolvency and Bankruptcy Board of India

Narendra Kumar

To become self-reliant and for gradual reduction in reliance on grant in aid, the Insolvency and Bankruptcy Board of India (IBBI) decided to increase the fees and charges levied from service providers, professionals appointed by insolvency professional and levy of fee on the processes under the Code. To implement revision in fees, various regulations have been changed which form subject matter of this article.

1. Background

Before undertaking the step of revision in fee structure, a discussion paper was issued regarding financial self-sufficiency of IBBI and need for proposal to review and revise fee structure was stated. The discussion paper states that only 20% of budget requirements were met from the sources of income from service providers, examinations conducted and other income from form filings and frivolous complaints. Thus, major source of income remained grant in aid.