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The National Company Law Tribunal (NCLT) has removed Narender Kumar Sharma from his position as interim resolution professional (IRP) overseeing the stalled Festival City housing project in Sector 143B, Noida, after concerns were raised over his disclosures and authorisation to accept the assignment. The tribunal has appointed Sudhir Kumar Agarwal as the new IRP and directed Sharma to hand over all project records and documents. The project is being developed by Anand Infoedge Pvt Ltd, Mist Avenue Pvt Ltd and Mist Direct Sales Pvt Ltd, which are undergoing insolvency proceedings as corporate debtors.
The National Company Law Tribunal (NCLT) has removed insolvency professional Narender Kumar Sharma as the interim resolution professional (IRP) for the stalled Festival City housing project in Sector 143B, Noida, following findings concerning non-disclosure of disciplinary proceedings and the validity of his authorisation to undertake the assignment. The tribunal appointed Sudhir Kumar Agarwal as his replacement and directed Sharma to transfer all project-related records, documents and other material to the new IRP.
Festival City is being developed by Anand Infoedge Pvt Ltd, Mist Avenue Pvt Ltd and Mist Direct Sales Pvt Ltd, which are co-developers and corporate debtors involved in insolvency proceedings. Sharma had been appointed as IRP for the three companies on July 19, 2024. His removal now shifts responsibility for the ongoing insolvency resolution process to Agarwal.
The proceedings followed a challenge to Sharma’s appointment. Under the Insolvency and Bankruptcy Board of India (IBBI) regulations, an insolvency professional accepting a new assignment is required to hold a valid Authorisation for Assignment (AFA). The professional must also submit a compliance affidavit and disclose whether any investigation or disciplinary proceedings are pending against them.
According to the complaint before the tribunal, Sharma had stated that his AFA was valid and that no investigation was pending against him when he accepted the assignment. The complainant alleged that Sharma did not have a valid AFA on the date of his appointment and had not disclosed pending disciplinary proceedings and an investigation by the IBBI.
Regulation 7A of the IBBI (Insolvency Professionals) Regulations, 2016, prohibits an insolvency professional from accepting or undertaking a new assignment without a valid AFA. The requirement applies to assignments accepted from January 1, 2020.
The tribunal subsequently cancelled Sharma’s appointment as IRP. The proceedings also raised the issue of expenses incurred during his tenure. According to the complaint, Sharma had accumulated fees of around INR 1.4 crore over approximately two years, based on a monthly fee of about INR 6 lakh. The tribunal directed that expenses incurred during his tenure, including legal expenses, would not be treated as part of the Corporate Insolvency Resolution Process (CIRP) costs and would have to be borne by Sharma.
The action against Sharma follows separate disciplinary proceedings by the IBBI. In June 2026, the regulator suspended his registration for two years in connection with his role as resolution professional in the Indirapuram Habitat Centre project. The IBBI had also imposed two penalties of INR 2 lakh each on Sharma in July 2024 over his failure to file an application concerning alleged fraudulent transactions in that insolvency process.
With Agarwal now appointed as the new IRP, the responsibility for managing the insolvency proceedings involving the three Festival City entities has moved to a new professional. Sharma has been directed to hand over the relevant project records and material, allowing the resolution process to continue under the replacement IRP.
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