The Insolvency and Bankruptcy Board of India (IBBI) and Enforcement Directorate (ED) have mutually devised a mechanism, allowing insolvency professionals (IPs) to bring assets of corporate debtors attached by the Enforcement Directorate (ED) back into the resolution pool. Such restitution of the assets is expected to give a fillip to the resolution process, by reducing the chances of the prosecution process against errant promoters for their past wrong deeds undermining the value of the assets being salvaged.

A conflict between the Insolvency Bankruptcy Code, 2016 ( IBC ) and the Prevention of Money Laundering Act 2002, which most ED actions are based on, have engaged the courts for the last many years. This is despite the IBC containing Section 32 (A), introduced in December 2019, th

See Full Page