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Valuing a Debtor Whose Records Have Been Seized

When the ED holds the books, the 47-day clock does not stop. How to reconstruct data from filings and third parties, and how to document the limitation defensibly.

Published
Updated
Reading time
5 min
Views
19
Questions
6 answered
  • Expert Reviewed
  • High Complexity
Topic
IBC Insolvency
Published
September 5, 2026
Last updated
Sep 28, 2026
Reading time
5 min
0:00
Last updated: September 2026Verified against: Government sources

The resolution professional is legally entitled to the corporate debtor's records. The Enforcement Directorate has them, and releasing anything requires the agency's own verification process to run its course.

That can take months. The forty-seven day valuation clock does not pause while it does.

Why access takes so long

Agencies do not release seized material simply because another statutory officer asks. They run their own checks, and the release competes with an active investigation.

Meanwhile the RP has obligations that assume the records exist: appointing valuers by day 47, collating claims, preparing the information memorandum, running the process against the overall CIRP timeline. The valuation timeline →

The mistake is to wait. Waiting produces a missed deadline and no data.

Where the data actually is

More survives outside the company than practitioners expect:

Regulatory filings. Annual accounts and returns filed with the ROC, GST returns, income-tax returns and assessment orders, PF and ESI filings. These give revenue, asset schedules, employee numbers and statutory positions.

Creditor records. Banks hold statements, sanction letters, security documents, stock statements and drawing-power calculations. Lenders in the CoC have every incentive to supply them.

Counterparty confirmations. Customers and suppliers can confirm balances and contract terms independently of the debtor's books.

Public registries. ROC charge searches, sub-registrar records, RERA filings, trademark and patent registries, litigation records.

Physical verification. The assets are still there even when the paperwork is not, which makes the site visit more important here, not less. Why desk valuation fails →

Prior professional work. Earlier audit reports, valuation reports, technical assessments and lender due diligence often survive with the people who prepared them.

Documenting the obstruction

This is what protects the RP and the valuer, and it has to be contemporaneous:

  • each request to the agency, dated, with the reference;
  • each response or absence of one;
  • escalations — to the agency, the CoC, or the Adjudicating Authority;
  • what was obtained and when;
  • what remains outstanding at the date of the report;
  • the revised plan and its execution.

A dated file built as events happen is a defence. An explanation assembled nine months later at a hearing is a reconstruction, and it reads like one. Regulation 27 →

What the valuation report must say

Silence about a limitation is the defect. Disclosure is the discipline:

  • which assets or records could not be verified, specifically;
  • the reason — seized, sealed, inaccessible;
  • the alternative sources relied on instead;
  • the assumptions made in the absence of primary data, and their basis;
  • the effect on the estimate — direction and, where possible, magnitude;
  • sensitivity on the assumptions that matter most.

A valuation that discloses its limitations and reasons around them is usable. One that presents a confident figure built on absent data is not, and it fails at the first challenge. Assumptions and sensitivity →

Building assumptions without primary data

Where data is genuinely unavailable, assumptions get constructed rather than observed — from industry benchmarks, sector recovery rates, comparable transactions and professional judgment.

That is legitimate. What makes it defensible is stating that this is what was done, and why the benchmark chosen is appropriate to this debtor. Professional judgment presented as observed data is the problem; professional judgment labelled as judgment is not. Judicial scrutiny →

Key takeaways

  • The deadline does not pause for an agency's process.
  • Do not wait. Waiting loses both the deadline and the data.
  • Most of the data exists outside the company — filings, lenders, registries, counterparties.
  • Physical verification matters more, not less, when records are gone.
  • Document every attempt on the day it happens.
  • Name the unverified items in the report and state the effect.
  • Label constructed assumptions as constructed.

Read next

Disclaimer: Positions stated as on 5 September 2026. General guidance only — take advice where an agency holds records in a specific case.

Quick recapKey facts & short answers

Key Facts About Valuing a Debtor Whose

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Does the 47-day valuation deadline extend if records are seized?

No. The obligation stands. What protects the RP is contemporaneous documentation of the attempts made and the reason for any delay.

Where can data be found if the books are unavailable?

ROC filings, GST and income-tax returns, PF and ESI records, bank statements and sanction documents held by lenders, counterparty confirmations, public registries, and earlier professional reports.

Valuing a Debtor Whose: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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About the author
9,274 articles
Vikas Sharma Verified expert Tax & Compliance Expert

Experienced in company registration, GST, trademark, and compliance. Helping Indian businesses stay compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

People also ask

Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

No. The obligation stands. What protects the RP is contemporaneous documentation of the attempts made and the reason for any delay.

ROC filings, GST and income-tax returns, PF and ESI records, bank statements and sanction documents held by lenders, counterparty confirmations, public registries, and earlier professional reports.

Yes, on reconstructed data — provided the sources, the assumptions and the limitations are disclosed in the report.

Which assets, why they could not be verified, what was relied on instead, and the effect on the estimate.

Yes, if labelled as judgment and reasoned. Presenting it as observed data is what makes a report indefensible.

The resolution professional — to the agency, the CoC and, where necessary, the Adjudicating Authority, recording each step.