Sections 217 and 218 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 217 lets any person aggrieved by the functioning of an insolvency professional agency, an insolvency professional or an information utility complain to the Insolvency and Bankruptcy Board of India (the Board). Section 218 lets the Board direct an inspection or investigation and sets out the investigating authority's powers. The Insolvency and Bankruptcy Code (Amendment) Act, 2026 replaces the three named bodies in both sections with the words "service provider". This article follows the IBBI consolidated text of the Code amended up to 12 August 2021, then the changes.
Section 217: "Any person aggrieved" may file a complaint to the Board in the form, time and manner specified. Section 218: the Board may, on a complaint or on reasonable grounds to believe there has been a contravention, order in writing an inspection or investigation; the investigating authority may require documents, enter a place and seize records (subject to the Code of Criminal Procedure, 1973 so far as applicable), and must submit a detailed report to the Board. The 2026 Act replaces the list of three bodies with "service provider", a newly defined term.
Section 217: who may complain, and against whom
As printed: "Any person aggrieved by the functioning of an insolvency professional agency or insolvency professional or an information utility may file a complaint to the Board in such form, within such time and in such manner as may be specified."
- Complainant: "any person aggrieved". The text does not restrict this to creditors or to a party to a process.
- Subject of the complaint: the "functioning" of one of three kinds of body: an insolvency professional agency, an insolvency professional, or an information utility.
- Where: to the Board.
- How: form, time and manner "as may be specified". Section 240(2)(zzy) refers to "the form, manner and time of filing complaint under section 217". The Code prints no time limit and no fee.
The heading as printed is "Complaints against insolvency professional agency or its member or information utility."
Example (invented). Lakeside Traders, an operational creditor, believes a resolution professional has ignored its claim. It is "aggrieved by the functioning" of an insolvency professional and may complain to the Board under section 217. Whether and how the agency of which the professional is a member also handles a grievance is for section 204(f) (see article 123). A party who wishes to take a position on a possible complaint can seek legal dispute resolution advice before filing.
Section 218: inspection and investigation
Sub-section (1). "Where the Board, on receipt of a complaint under section 217 or has reasonable grounds to believe that any insolvency professional agency or insolvency professional or an information utility has contravened any of the provisions of the Code or the rules or regulations made or directions issued by the Board thereunder, it may, at any time by an order in writing, direct any person or persons to act as an investigating authority to conduct an inspection or investigation". Two triggers are named: a complaint, and the Board's own reasonable grounds to believe there has been a contravention of the Code, the rules, the regulations or the Board's directions. The order must be in writing.
Sub-section (2). The inspection or investigation "shall be conducted within such time and in such manner as may be specified by regulations" (section 240(2)(zzz)).
Sub-section (3). The Investigating Authority "may, in the course of such inspection or investigation, require any other person who is likely to have any relevant document, record or information to furnish the same, and such person shall be bound to furnish". The proviso adds a safeguard: the authority "shall provide detailed reasons to such person before requiring him to furnish such document, record or information".
Sub-section (4). The authority may "enter any building or place where they may have reasons to believe that any such document, record or information relating to the subject-matter of the inquiry may be found and may seize any such document, record or information or take extracts or copies therefrom, subject to the provisions of section 100 of the Code of Criminal Procedure, 1973, insofar as they may be applicable". The reference is quoted as printed; the reader should check the current law for the corresponding provision of that Code.
Sub-section (5). Seized books, registers, documents and records are kept "for such period not later than the conclusion of the investigation as it considers necessary" and then returned to the person from whose custody they were seized. The proviso lets the authority place identification marks before returning them.
Sub-section (6). "A detailed report of inspection or investigation shall be submitted to the Board by the Investigating Authority." Section 220(1) then has the Board's disciplinary committee consider the reports submitted under this sub-section (see article 129).
| Step | Provision | Who | What the text says |
|---|---|---|---|
| Complaint | Section 217 | Aggrieved person | May file to the Board in specified form, time and manner |
| Order | Section 218(1) | Board | Written order directing a person to act as investigating authority |
| Powers | Section 218(3), (4) | Authority | Require documents (with reasons); enter and seize, subject to section 100 of the Code of Criminal Procedure, 1973 |
| Custody | Section 218(5) | Authority | Keep records as long as it considers necessary, up to the conclusion of the investigation, then return |
| Report | Section 218(6) | Authority | Submit a detailed report to the Board |
What the Amendment Act, 2026 changes
Section 2 of the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026) inserts clause (31A) in section 3: "'service provider' means an insolvency professional, insolvency professional agency, information utility, registered valuer and any person falling within the category of persons notified by the Central Government, for rendering services in relation to insolvency and bankruptcy processes under this Code and is registered with the Board". Sections 63 and 64 then use that term.
| Provision | As printed in the consolidated text | After the 2026 Act |
|---|---|---|
| Section 217, marginal heading | Complaints against insolvency professional agency or its member or information utility. | Complaints against service providers. |
| Section 217, operative words | "an insolvency professional agency or insolvency professional or an information utility" | "a service provider" |
| Section 218, marginal heading | Investigation of insolvency professional agency or its member or information utility. | Investigation of service providers. |
| Section 218(1), both places | "insolvency professional agency or insolvency professional or an information utility" | "service provider" |
So, after the 2026 Act, section 217 would read: "Any person aggrieved by the functioning of a service provider may file a complaint to the Board in such form, within such time and in such manner as may be specified." This is built from the Act's words. Two effects follow from the new definition: a registered valuer, and any person in a category the Central Government notifies, falls within the complaint and investigation route, but only if "registered with the Board". The categories actually notified are not in the texts consulted.
The Amendment Act, 2026 comes into force on the date or dates the Central Government notifies; the notification is not in the texts consulted, so check whether this change has been notified. Sections 217 and 218 are the first of four sections (217 to 220) the Act recasts; section 219 and section 220 are explained in article 129.
Rules and regulations
The sets that implement these sections are the Insolvency and Bankruptcy Board of India (Grievance and Complaint Handling Procedure) Regulations, 2017, whose copy consulted is amended up to 03-06-2026, and the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017, whose copy consulted is amended up to 02-06-2026. The dates of those copies do not show that any provision of the Amendment Act, 2026 is in force.
Amendments and notifications made after 12 August 2021, other than the Amendment Act, 2026, are not in the texts consulted and should be checked.
Need help with a complaint or an investigation?
A complaint to the Board, or an investigation order served on a professional, agency or utility, calls for a careful reading of the order against section 218. Our team can go through the order, the reasons given for any demand for documents and your reply options in legal dispute resolution support.
Key takeaways
- Under section 217, any person aggrieved by the functioning of an insolvency professional agency, an insolvency professional or an information utility may complain to the Board.
- The Board may order an investigation on a complaint or on reasonable grounds to believe there has been a contravention.
- The investigating authority must give detailed reasons before requiring a person to furnish documents.
- Seizure is subject to section 100 of the Code of Criminal Procedure, 1973 so far as applicable; check the current law.
- The 2026 Act replaces the three named bodies with "service provider"; it comes into force by notification, so check whether it has been notified.
Read next
- Sections 219 and 220: show cause notice and disciplinary committee of the Board
- Sections 215 and 216: submission and authentication of financial information
- Sections 203 to 205: governing board, functions and bye-laws of an agency
- Section 208: the statutory code of conduct for every insolvency professional
Disclaimer: Based on the IBBI consolidated text of the Insolvency and Bankruptcy Code, 2016 amended up to 12 August 2021 and on the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026), which comes into force on the date or dates notified by the Central Government, as consulted on 2 October 2026. It explains the words of the statute only; commencement notifications, other amendments made after 12 August 2021, notified thresholds, the rules and IBBI regulations, and the way tribunals and courts apply these sections should be checked. This article is general information, not legal advice; check the official text before acting.