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Centre eyes fix where fraud probes clash with insolvency
Mint Ahmedabad
|October 02, 2025
The government is keen to iron out the conflicts between the two statutes—PMLA and IBC
The conflict between PMLA asset attachments and IBC resolution proceedings stems from both statutes containing powerful non-obstante clause.
(MINT)
The government is set to decide how two overlapping laws can work harmoniously so that homebuyers aren’t adversely affected when a real estate developer slips into bankruptcy and also faces regulatory action for financial crimes, two people familiar with the development said.
The ministry of corporate affairs, the Insolvency and Bankruptcy Board of India (IBBI), and the Directorate of Enforcement (ED) have held several meetings on aligning the two laws—the Prevention of Money Laundering Act (PMLA) and the Insolvency and Bankruptcy Code (IBC)—and now the government has to take a view on the matter, one person said.
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