Regulation 12 - Show-cause notice - Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017

Show-cause notice 12. (1) The show-cause notice shall be in writing and shall state- (a) the provisions of the Code under which it has been issued; (b) the details of the alleged facts; (c) the details of the evidence in support of the alleged facts; 2 [ (d) the provisions of the Code, rules, regulations and guidelines thereunder allegedly violated, or the manner in which the public interest is allegedly affected; ] (e) the actions or directions that the Board proposes to take or issue, if the allegations are established; 3 [ **** ] (f) the time within which the noticee may make written submission. 4 [ (g) the manner in which service provider is required to respond to the show cause notice; and (h) consequences of failure to respond to the show-cause notice. ] (2) For the purposes of clause (e) of sub-regulation (1), the Board shall take into account, but not limited to, the following factors:- (a) the nature and seriousness of the alleged contraventions, including whether it was deliberate, reckless or negligent on the part of the noticee; (b) the consequences and impact of the alleged contravention, including - (i) unfair advantage gained by the noticee as a result of the alleged contravention; (ii) loss caused, or likely to be caused, to 1 [ stakeholders ] or any other person as a result of the alleged contravention; and (iii) the conduct of the noticee after the occurrence of the alleged contravention, and prior to the alleged contraventions. (3) The show-cause notice shall provide 5 [ fifteen ] days to the noticee to make a written submission. (4) The show-cause notice shall state, if a noticee fails to respond under sub-regulation (3) within the given time, it shall be disposed of based on the material available on record. (5) The show-cause notice shall enclose copies of relevant documents and extracts of relevant portions from the report of investigation or inspection, or other records. 6 [ (6) A show-cause notice shall be served on the service provider in electronic form at the email address provided by the service provider to the Board and a copy shall also be sent by registered post. ] (7) The Board shall refer the show-cause notice to the Disciplinary Committee alongwith all the relevant records including the written submissions, if any, made by the noticee in the matter. ************* NOTES:- 1. Substituted vide Notification No. IBBI/2022-23/GN/REG087 dated 14-06-2022 before it was read as, clients 2. Substituted vide Notification No. IBBI/2022-23/GN/REG087 dated 14-06-2022 before it was read as, (d) the provisions of the Code, or the rules, regulations or guidelines made thereunder, allegedly violated; 3. Omitted vide Notification No. IBBI/2022-23/GN/REG087 dated 14-06-2022 before it was read as, and 4. Inserted vide Notification No. IBBI/2022-23/GN/REG087 dated 14-06-2022 5. Substituted vide Notification No. IBBI/2022-23/GN/REG087 dated 14-06-2022 before it was read as, at least 21 6. Substituted vide Notification No. IBBI/2022-23/GN/REG087 dated 14-06-2022 before it was read as, (6) A show-cause notice issued shall be served on the noticee- (a) by sending it to the noticee at its registered office, by registered post with acknowledgement due; and (b) by an appropriate electronic form to the email address provided by the service provider to the Board.