The Insolvency and Bankruptcy Board of India (IBBI) has issued a circular giving clarification regarding payment of fees to an Insolvency Professional (IP). The circular says that the fees charged by IPs shall be is reasonable and shall raise bills or invoices in his name towards such fees, and shall be paid to his bank account.
The IBBI circular clearly mentioned that any payment of fees for the services of an insolvency professional to any person other than the insolvency professional shall not form part of the insolvency resolution process cost.
[Circular No. IP/004/2018]