Disciplinary proceedings.
(1) Based on the findings of an inspection or investigation, or on material otherwise available on record, if the Board is of the prima facie opinion that sufficient cause exists to take actions permissible under section 220, it shall issue a show-cause notice to the insolvency professional agency.
(2) 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;
(d) the provisions of the Code, rules, regulations or 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;
(f) the manner in which the insolvency professional agency is required to respond to the show-cause notice;
(g) consequences of failure to respond to the show-cause notice; and
(h) procedure to be followed for disposal of the show-cause notice.
(3) 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.
(4) A show-cause notice issued shall be served on the insolvency professional agency in the following manner-
(a) by sending it to the insolvency professional agency at its the registered office, by registered post with acknowledgement due; or
(b) by an appropriate electronic means to the email address provided by the insolvency professional agency to the Board.
(5) The Board shall constitute a Disciplinary Committee for disposal of the show- cause notice.
(6) The Disciplinary Committee shall dispose of the show-cause notice assigned under (5) by a reasoned order in adherence to principles of natural justice.
(7) The Disciplinary Committee shall endeavour to dispose of the show-cause notice within a period of six months of the assignment.
(8) The Disciplinary Committee shall consider the submissions, if any, made by the insolvency professional agency.
(9) After considering the relevant material facts and circumstances and material on record, the Disciplinary Committee shall dispose of the show-cause notice by a reasoned order.
(10) The order in disposal of a show-cause notice may provide for-
(a) no action;
(b) warning;
(c) any of the actions under section 220(2) to (4); or
(d) a reference to the Board to take any action under section 220(5).
(11) The order passed under sub-regulation (10) shall not become effective until thirty days have elapsed from the date of issue of the order unless the Disciplinary Committee states otherwise in the order along with the reason for the same.
(12) The order passed under sub-regulation (10) shall be issued to the insolvency professional agency immediately, and published on the website of the Board.
(13) If the order passed under sub-regulation (10) suspends or cancels the registration of the insolvency professional agency, the Disciplinary Committee shall require the insolvency professional agency to-
(a) discharge pending obligations;
(b) continue its functions till such time as may be specified, to enable the enrolment of its members with another insolvency professional agency; and
(c) comply with any other directions as considered appropriate.