The Insolvency and Bankruptcy Board of India (IBBI) has issued Circular No. IBBI/CIRP/88/2025, dated 18 November 2025, addressed to:
- Registered Insolvency Professionals (IPs)
- Insolvency Professional Entities (IPEs)
- Insolvency Professional Agencies (IPAs)
This circular has been disseminated via email and published on the official IBBI website for wider circulation.
Objective: Ensuring Stronger Due Diligence Under Section 29A
To enhance fairness, transparency, and credibility in the Corporate Insolvency Resolution Process (CIRP), the IBBI has reinforced the due-diligence requirements associated with Section 29A of the Insolvency and Bankruptcy Code (IBC), 2016.
Section 29A outlines ineligibility criteria for resolution applicants, ensuring that only legally compliant and trustworthy entities participate in resolution processes. Consequently, both Resolution Professionals (RPs) and Prospective Resolution Applicants (PRAs) carry statutory responsibilities to uphold these requirements.
Key Compliance Directives Under Section 29A
1. Regulation 36A(4): Mandatory Disclosure in Form G
The RP must expressly include all Section 29A ineligibility criteria in Form G, ensuring clarity for potential applicants.
2. Regulation 36A(7): Undertaking by Prospective Resolution Applicants
Each PRA must submit an undertaking with the Expression of Interest (EOI) confirming they are not disqualified under Section 29A.
3. Section 30 & Regulation 39: Affidavit of Eligibility
Every resolution plan must be accompanied by an affidavit affirming the applicant’s eligibility under Section 29A.
4. Regulation 36A(8): RP’s Duty to Conduct Detailed Due Diligence
The RP must carry out comprehensive and independent due diligence on each PRA to verify Section 29A compliance before allowing them to proceed.
5. Compliance Certificate – Form H
The RP must:
- Validate the correctness of the affidavit submitted
- Attach a Due Diligence Certificate along with Form H while submitting the resolution plan to the Adjudicating Authority
Why Enhanced Due Diligence Is Crucial
Strengthening due-diligence safeguards ensures:
- Integrity of the CIRP framework
- Participation by genuine and credible applicants
- Lower risk of post-approval litigation
- Improved and informed decision-making for the Committee of Creditors (CoC)
Specific Directions Issued to Resolution Professionals
IBBI has directed RPs to:
- Submit a detailed note on Section 29A compliance to the CoC at the time of evaluating resolution plans
- Ensure that all discussions, observations, and decisions relating to Section 29A eligibility are accurately reflected in the minutes of CoC meetings
These directives are issued under Section 196 of the Insolvency and Bankruptcy Code, empowering IBBI to regulate the insolvency ecosystem.