ED, IBBI issue SOP for restitution of attached properties under PMLA

The Enforcement Directorate (ED) and the Insolvency and Bankruptcy Board of India (IBBI) have created a mechanism under which resolution professionals will give an undertaking to the courts stating that the assets of companies undergoing insolvency proceedings attached under the prevention of money laundering act (PMLA) can only be used for the benefit of creditors, such as banks and homebuyers, and shall not flow back to the promoters or other accused persons, the investigative agency said on Wednesday.

- Neeraj Chauhan

A circular in this regard was issued by the IBBI on Tuesday, setting a standard operating procedure (SOP) to enable the restoration of assets to the victims.