IBBI discussion paper proposes increasing fees on service providers

The Board is short of about Rs 21 crore to be self-sufficient and must shift from relying on the government, it says

The Insolvency and Bankruptcy Board of India (IBBI) has released a paper that proposes increasing the fee on service providers it appoints, seeking a buttress its finances as statutory independent body.

The IBBI is short of about Rs 21 crore to be self-sufficient and must shift from relying on the government to a system where the it recovers all or part of its costs by levying fees, said the paper.

It proposed levying regulation fee on resolution in the insolvency process and fee on other professionals by insolvency professionals.

Only 20 per cent of the IBBI’s funds come from fees on service providers,