Now Reading: NCLT removes IRP from Noida project for hiding charges
-
01
NCLT removes IRP from Noida project for hiding charges
The National Company Law Tribunal (NCLT) has removed Narender Kumar Sharma as interim resolution professional (IRP) for the stalled Festival City housing project in Noida's Sector 143B, citing his failure to disclose…
The National Company Law Tribunal (NCLT) has removed Narender Kumar Sharma as interim resolution professional (IRP) for the stalled Festival City housing project in Noida's Sector 143B, citing his failure to disclose pending disciplinary proceedings and accepting the assignment without a valid authorisation. The tribunal appointed Sudhir Kumar Agarwal as the new IRP and ordered Sharma to hand over all documents.
Festival City is developed by Anand Infoedge Pvt Ltd, Mist Avenue Pvt Ltd and Mist Direct Sales Pvt Ltd. Sharma was appointed IRP on July 19, 2024. Lawyer Shyam Kishan Saraf alleged that Sharma gave a false affidavit stating his authorisation was valid and no investigation was pending, while he was actually facing disciplinary proceedings before the Insolvency and Bankruptcy Board of India (IBBI).
The tribunal cancelled Sharma's appointment on Wednesday and ruled that expenses incurred during his tenure, including legal fees, will not form part of the CIRP costs and must be borne by Sharma. Sharma had accumulated fees of about Rs 1.4 crore over two years at Rs 6 lakh per month. The order comes after the IBBI suspended Sharma's registration for two years on June 10, 2026, related to the Indirapuram Habitat Centre project.
Indian Opinion Analysis
This case underscores the IBBI's tightening grip on insolvency professionals who flout disclosure rules. Regulation 7A, effective since 2020, was introduced precisely to prevent professionals with pending probes from taking on new assignments, yet compliance gaps persist. Sharma's removal and personal liability for costs signal that tribunals will now enforce these rules strictly. The NCLT's direction that Sharma bear the legal fees personally is an unusual step, potentially setting a precedent. The next signal to watch is whether the IBBI initiates fresh proceedings against Sharma for the false affidavit, which could lead to further sanctions or debarment.
Source: legal.economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
