IBBI Suspends Insolvency Professional Navneet Gupta’s Registration for One Year; CoCs Must Replace Him

The Insolvency and Bankruptcy Board of India (IBBI) has suspended the registration of insolvency professional Navneet Gupta for one year after disciplinary proceedings concerning his conduct as resolution professional of Nimitaya Hotel and Resorts Limited. The Disciplinary Committee’s Order No. IBBI/DC/342/2026 is dated August 21, 2026 and states that the suspension will take effect 30 days from the date of issue.

The order has an immediate practical consequence for any corporate insolvency resolution process in which Gupta is currently serving. IBBI directed that copies be sent to the Committees of Creditors of corporate debtors where he is acting as an insolvency professional so that the respective CoCs can replace him with another resolution professional under Section 27 of the Insolvency and Bankruptcy Code, 2016.

Background: Nimitaya Hotel and Resorts CIRP

The disciplinary proceedings arose from Gupta’s role in the CIRP of Nimitaya Hotel and Resorts Limited. According to the IBBI order, the CIRP commenced on December 24, 2021 on a Section 7 application filed by Indian Bank. Gupta was appointed as the interim resolution professional and later continued as the resolution professional.

The Committee of Creditors approved a resolution plan on January 8, 2023. An application seeking approval of that plan, identified in the order as IA/987/2023, was filed before the adjudicating authority on January 19, 2023. IBBI recorded that the approval application remained pending at the time of the disciplinary order.

Three complaints led to the disciplinary process

IBBI’s order records that it received three complaints concerning the insolvency professional on February 28, March 13 and May 19, 2025. A show-cause notice dated November 28, 2025 was subsequently issued. Gupta submitted his reply on January 19, 2026, appeared for a personal hearing before the Disciplinary Committee on August 11, 2026 and made additional written submissions on August 17.

The Disciplinary Committee examined multiple issues arising from the CIRP and the professional’s responses. One of the findings discussed in the order relates to cooperation with the regulator during the complaint process. The committee also examined compliance around the conduct of the CIRP, including the timing and governance of CoC meetings, due-diligence responsibilities and expenditure-related issues.

IBBI records a long gap between CoC meetings

The order notes that the 18th CoC meeting was held on December 27, 2023, while the 19th meeting was held on December 31, 2024, a gap of more than a year. The disciplinary record considers this alongside the duties of a resolution professional to conduct the process in accordance with the Code and regulations even where a resolution-plan approval application is pending.

For insolvency professionals, the broader compliance message is that a pending plan-approval application does not by itself remove ongoing process, reporting and governance obligations. Records of CoC decisions, correspondence, regulatory responses, expenses and material process actions therefore need to remain complete and capable of being produced promptly if the Board seeks them.

One-year suspension and replacement direction

Exercising powers under Section 220 of the IBC read with Regulation 13 of the IBBI (Inspection and Investigation) Regulations, 2017, the Disciplinary Committee ordered a one-year suspension of Gupta’s insolvency-professional registration. Importantly, the order provides a 30-day period before the suspension becomes effective.

IBBI also directed circulation of the order to the Indian Institute of Insolvency Professionals of ICAI, of which Gupta is a professional member, and to the Registrar of the NCLT Principal Bench. The order additionally records that a copy is to be sent to the Managing Director and Chief Executive Officer of Indian Bank in connection with an issue discussed in the disciplinary proceedings.

What CoCs and insolvency teams should do

- Identify affected assignments: CoCs should determine whether Gupta is presently acting as the insolvency professional in their process.

- Plan replacement under Section 27: The IBBI order expressly directs affected CoCs to replace him with another resolution professional.

- Protect process continuity: Records, statutory filings, CoC minutes, claims data and pending applications should be handed over in a controlled manner so that a change of professional does not disrupt the CIRP.

- Review regulatory-response controls: Insolvency professionals and firms should maintain systems to ensure IBBI notices, complaints and information requests are answered within the stipulated timelines.

- Maintain governance while applications are pending: A pending resolution-plan approval does not eliminate the need to monitor continuing duties under the Code and regulations.

The August 21 order is significant beyond the individual disciplinary action because it reinforces the Board’s expectations around regulatory cooperation, continuing CIRP governance and professional accountability. For CoCs where Gupta is currently serving, the operative task is clear: prepare for replacement under Section 27 once the suspension becomes effective. Other insolvency professionals should treat the order as a reminder to preserve complete process records and respond to IBBI information requests and complaints with the same discipline applied to statutory CIRP deadlines.

Key takeaway

A current IBBI disciplinary action with direct professional-conduct, CIRP-governance and assignment-continuity implications for insolvency professionals, CoCs, lenders and advisers.