New Delhi, Nov 5 (UNI) In a significant move, the Enforcement Directorate (ED) has facilitated the release of assets attached under the PMLA to support the resolution of companies under the Insolvency and Bankruptcy Code (IBC). This step is aimed at maximizing recovery for creditors, including banks and homebuyers.
Previously, PMLA attachments could hinder the IBC process. After coordination with the Insolvency and Bankruptcy Board of India (IBBI), a standard mechanism has been established. This allows Resolution Professionals to seek the release of attached assets for the benefit of creditors, ensuring no advantage flows back to the accused.
The initiative demonstrates that PMLA enforcement and IBC resolution can work in tandem to prosecute offenders while protecting creditor interests.
