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States fix where fraud clash with insolvency
Mint New Delhi
|October 02, 2025
The conflicts between the two statutes—PMLA and IBC
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The conflict between the two statutes associated with litigations under criminal law, the Prevention of Money-Laundering Act (PMLA), to recover tainted assets and restores rightful owners.
PMLA asset attachments and IBC resolution proceedings stems from both statutes containing powerful non-obstante clause.
The interplay of the two laws has been at the centre of several disputes, given that both the statutes—the PMLA enacted in 2002 and the IBC in 2016—assert their primacy with the clause “notwithstanding anything to the contrary contained” in any other law, explained the second person, who also spoke on condition of not being identified.
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