Offences and Penalties under Insolvency and Bankruptcy Code, 2016 (Chapter VII, IBC 2016)

Categories of Offences

1. Offences committed by Corporate Debtor or the Officers(s) of Corporate Debtors

Section Particulars of Offence Penalties
Section 68 Where a Corporate Debtor within the twelve months immediately preceding the insolvency commencement date:

  • Willfully concealed any property or any debt, fraudulently removed any part of the property, of the value of ten thousand or more, or
  • Wilfully concealed, destroyed or made a false entry in, or altered any document relating to the property of the corporate debtor or its affairs, or
  • At any time after the insolvency commencement date, taken in pawn or pledge, or otherwise received the property knowing it to be so secured, transferred or disposed of.
Imprisonment: 3 – 5 years
or
Fine: INR 1 lakh – INR 1 crore
or Both
Section 69 On or after the insolvency commencement date, Entering into transactions defrauding creditors or removing any part of the property of the corporate debtor within two months before the date of any unsatisfied judgment, decree or order for payment of money obtained against the corporate debtor
Section 70 (1) On or after the insolvency commencement date, does not disclose or deliver all or part of the property or, any books or papers to the resolution professional which he is required to be delivered, or fails to provide any information regarding the accounts of the corporate debtor
Section 71 On and after the insolvency commencement date, destroys, mutilates, alters or falsifies any books, papers or securities, or makes or is in the knowledge of making of any false or fraudulent entry in the accounts with the intention to defraud any person.
Section 72 Makes any material and willful omission in any statement relating to the affairs of the corporate debtor.
Section 73 Before or after the insolvency commencement date, makes a false representation or commits any fraud for the purpose of obtaining the consent of the creditors to an agreement with reference to the affairs of the corporate debtor
Section 74 (1) violates or willfully permits the contravention of the provisions of section 14 of the code or
(3) if he contravenes any of the terms of such resolution plan or abets such contravention.
Section 77 A corporate debtor provides information which is false in material particulars, in the application under section 10 knowing it to be false and omits any material fact, knowing it to be material

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