IBBI Introduces Fee for Delayed Filing of Liquidation Forms

IBBI Introduces Fee for Delayed Filing of Liquidation Forms

The Insolvency and Bankruptcy Board of India (IBBI) has issued Circular No. IBBI/LIQ/107/2026 dated 24 September 2026, notifying the commencement of fees for delayed filing of forms under Regulation 47B of the IBBI (Liquidation Process) Regulations, 2016. The circular applies to all Registered Insolvency Professionals (IPs), Recognised Insolvency Professional Entities (IPEs), and Registered Insolvency Professional Agencies (IPAs).

Purpose of the IBBI Circular:

The objective of the circular is to Improve compliance with liquidation reporting requirements., Encourage timely submission of statutory forms and Ensure accurate and up-to-date monitoring of liquidation processes by the IBBI.

Key Highlights of IBBI Introduces Fee for Delayed Filing of Liquidation Forms

• Fee for Delayed Filing : Any liquidation form due on or before 30 September 2026 and filed after its prescribed due date will attract a fee of INR 500 per month of delay plus applicable GST.
• Applies to Corrections and Updates : The fee is not limited to fresh filings. It will also apply where forms are submitted after the due date through Correction, Updation and Any other delayed submission process
• Regulatory Basis : The levy has been introduced under Regulation 47B of the Liquidation Process Regulations to strengthen reporting compliance during liquidation proceedings.
• Example : Suppose a liquidation form was due on 15 July 2026 but is filed on 20 November 2026. Since the filing is delayed by approximately four months, the Insolvency Professional may be required to pay: INR 500 × 4 months = INR 2,000 + applicable GST.

Practical Impact of IBBI Introduces Fee for Delayed Filing of Liquidation Forms

• Liquidators and Insolvency Professionals handling liquidation assignments must ensure timely filing of all prescribed liquidation forms. Delays will now have a direct financial cost in addition to potential compliance concerns.
• From now onwards, liquidation forms due on or before 30 September 2026 that are filed after their due date will attract a late filing fee of INR 500 per month (or part thereof) plus GST. Insolvency Professionals should review all pending liquidation filings and regularize them at the earliest to avoid additional costs

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