IBBI Cancels Insolvency Professional Deepak Kumar Goyal’s Registration Over Homebuyer Representation Lapses

What has changed

The Insolvency and Bankruptcy Board of India has cancelled the registration of insolvency professional Deepak Kumar Goyal after its Disciplinary Committee found lapses in the way he acted as authorised representative for a class of homebuyer creditors during a corporate insolvency resolution process. The order is dated 20 August 2026 and is set to come into force 30 days from the date of issue.

What IBBI decided

In its disciplinary order, IBBI examined Goyal's conduct as an authorised representative of homebuyers in a committee of creditors. The order records that the homebuyer class represented by him carried 91% of the voting share in the CoC. IBBI's Disciplinary Committee concluded that he conveyed concurrence to an extension of the timeline for submission of revised resolution plans without first obtaining instructions from the creditors he represented.

The Committee held that this conduct breached the obligation under section 25A(3) of the Insolvency and Bankruptcy Code, 2016, read with regulation 16A(10) of the CIRP Regulations. It also referred to regulation 7(2)(a) and 7(2)(h) of the Insolvency Professionals Regulations and clause 14 of the Code of Conduct.

Why prior instructions were central to the order

Goyal argued that the extension of time for revised plans was procedural in nature. The Disciplinary Committee rejected that position. According to the order, section 25A(3) creates a mandatory and unqualified requirement for an authorised representative to act in accordance with prior instructions of the creditors represented when voting on their behalf.

The Committee said an authorised representative cannot independently classify an item as merely procedural or commercial and then dispense with the requirement to obtain instructions. That finding is significant for insolvency professionals who represent large classes of financial creditors, because the representative's role is not a substitute for the creditors' own voting decision.

Record-keeping lapse also examined

The order also records a separate lapse concerning meetings with the class of creditors. IBBI found that Goyal did not properly record the proceedings and prepare minutes of meetings with the homebuyers he represented. The Committee linked this failure to the professional duties imposed on an insolvency professional, including the requirement under section 208(2)(a) and section 208(2)(e) of the Code to take reasonable care and diligence and to perform functions in the manner and subject to the conditions specified by the Board.

For practitioners, this makes the order relevant beyond the specific voting issue. An authorised representative needs a defensible record of consultation, instructions received, proceedings conducted and the basis on which votes or positions are communicated to the CoC.

Registration cancelled and existing assignments affected

The Disciplinary Committee cancelled Goyal's registration number IBBI/IPA-001/IP-P-02490/2022-2023/14143. The order states that, because section 206 of the Code bars a person from rendering services as an insolvency professional without valid registration, he cannot continue existing assignments after the cancellation takes effect.

The order further states that committees of creditors in matters where he is serving as resolution professional would need to replace him in accordance with section 27 of the Code. The cancellation takes effect after 30 days from the date of issue of the order, rather than immediately on 20 August 2026.

What insolvency professionals should take away

- Authorised representatives should obtain prior instructions from the creditor class before acting or voting where the Code requires those instructions.

- A representative should not assume that describing a matter as procedural removes a statutory requirement to consult the creditors represented.

- Meetings and consultations with a creditor class should be properly documented, with proceedings and minutes maintained as part of the professional record.

- Where a disciplinary order affects registration, practitioners and CoCs should carefully track the effective date and the consequences for ongoing assignments.

Practical takeaway

The August 20 order reinforces that an authorised representative is expected to function as a channel for the collective instructions of the creditors represented, not as an independent decision-maker on matters requiring creditor directions. For insolvency professionals, the compliance lesson is twofold: obtain the required instructions before conveying a position, and maintain a clear documentary trail showing how those instructions were obtained and acted upon.

Useful official links

IBBI Disciplinary Committee Order in the matter of Deepak Kumar Goyal

Key takeaway

A same-day IBBI disciplinary order has direct compliance relevance for insolvency professionals, authorised representatives, CoCs and advisers handling homebuyer creditor classes.