Regulation 21 - Authentication of default - Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017

1 [21. 2 [Authentication of default. ] (1) An information utility shall expeditiously undertake the process of authentication and verification of information of default as soon as it is received. (2) For the purpose of sub-regulation (1), the information utility shall- (a) deliver the information of default to the debtor seeking confirmation of the same within the time specified in the Technical Standards; (b) remind the debtor at least three times for confirmation of information of default, in case the debtor does not respond, allow three days each time for the debtor to respond; (c) deliver the information of default or the reminder, as the case may be, to the debtor either by hand, post or electronic means at the postal or e-mail address of the debtor- (i) registered with the information utility by him, failing which, 3 [ (ii) recorded with MCA 21 and the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) registry as repositories or any other statutory repository as approved by the Board, failing which, ] (iii) submitted in Form C of the Schedule. 4 [ (3) On completion of the process under sub-regulation (2), the information utility shall record the status of authentication of information of default as indicated in the following Tables: TABLE-1 SI. No. Response of the Debtor Status of Authentication Colour of the Status (1) (2) (3) (4) 1 Debtor confirms the information of default Authenticated Green 2 Debtor disputes the information of default Disputed Red 3 Debtor does not respond even after three reminders Deemed to be Authenticated Yellow Provided that in case of financial creditors which are banks included in the second schedule of the Reserve Bank of India Act, 1934, the information utilities will record the status of authentication of information of default as indicated in the Table 2 below: TABLE-2 SI. No. Response of the debtor Status of authentication Colour of the status (1) (2) (3) (4) 1 (a) Debtor confirms the information of default, or (b) Debtor does not respond even after three reminders Authenticated Green 2 Debtor disputes the information of default Disputed Red (4) After recording the status of information of default under sub-regulation (3), the information utility shall communicate the status of authentication in physical or electronic form of the relevant colour, as indicated in column (4) of the Tables 1 or 2, as the case may be, by issuing a record of default in Form D of the Schedule, to the registered users who are- (a) creditors of the debtor who has defaulted in payment of a debt; (b) parties and sureties, if any, to the debt in respect of which the information of default has been received. ] ] ********* Notes 1. Substituted vide NOTIFICATION No. IBBI/2019-20/GN/REG046 dated 25-07-2019 before it was read as Information of default 21. (1) On receipt of information of default, an information utility shall expeditiously undertake the processes of authentication and verification of the information. (2) On completion of the processes of authentication and verification under sub-regulation (1), the information utility shall communicate the information of default, and the status of authentication to registered users who are- (a) creditors of the debtor who has defaulted; (b) parties and sureties, if any, to the debt in respect of which the information of default has been received. 2. Substituted vide Notification No. IBBI/2022-23/GN/REG085 dated 14-06-2022 before it was read as, Information of default. 3. Substituted vide Notification No. IBBI/2022-23/GN/REG085 dated 14-06-2022 before it was read as, (ii) recorded with any other statutory repository as approved by the Board, failing which, 4. Substituted vide Notification No. IBBI/2022-23/GN/REG085 dated 14-06-2022 before it was read as, (3) On completion of the process under sub-regulation (2), the information utility shall record the status of authentication of information of default as indicated in the Table below: Table Sl. No. Response of the Debtor Status of Authentication Colour of the Status (1) (2) (3) (4) 1 Debtor confirms the information of default Authenticated Green 2 Debtor disputes the information of default Disputed Red 3 Debtor does not respond even after three reminders Deemed to be Authenticated Yellow (4) After recording the status of information of default under sub-regulation (3), the information utility shall communicate the status of authentication in physical or electronic form of the relevant colour, as indicated in column (4) of the Table thereof, to the registered users who are- (a) creditors of the debtor who has defaulted; (b) parties and sureties, if any, to the debt in respect of which the information of default has been received.