ED–IBBI Coordination Clears Path for Restitution of PMLA

The directorate of enforcement (ED) has announced a coordinated initiative with the Insolvency and Bankruptcy Board of India (IBBI) to enable the release of assets attached under the Prevention of Money Laundering Act (PMLA) for use in insolvency resolution processes under the Insolvency and Bankruptcy Code (IBC). The step aims to maximise recovery for creditors, including banks and homebuyers, while ensuring that proceeds of crime remain beyond the reach of offenders. In a release, ED says it has taken proactive measures to resolve long-standing obstacles where assets of companies undergoing corporate insolvency resolution process (CIRP) or liquidation were frozen under PMLA orders. These attachments often restricted the use of such assets in the resolution process and delayed credi