This step ensures that the recovered assets are used only for the benefit of creditors, no benefit goes back to the accused/promoters and full reporting and compliance safeguards remain in place until the resolution is finalised. | Photo credit: Getty Images/iStockphoto
The Enforcement Directorate has taken proactive steps to support the successful resolution of companies under the Insolvency and Bankruptcy Code (IBC) by enabling the recovery of assets previously attached under the Prevention of Money Laundering Act (PMLA), the agency said on Wednesday (5 Nov 2025).
“This measure is aimed at maximizing value for lenders, including banks and home and apartment buyers. In several insolvency cases, the assets of the corporate debtor were under PMLA attachment, which limited their use in the resolution process. To address this issue, several rounds of coordination meetings were held between the ED and the Insolvency and Bankruptcy Board of India (IBBI) to create a standard mechanism for restitution or liquidation of seized assets during itCIRP.
This process now allows Resolution Professionals to seek the release of such assets through applications under Sections 8(7) and 8(8) of the PMLA. “As a result of this coordinated approach, a standard undertaking to be filed by insolvency professionals before the Special Court was finalized and circulated to IBBI through a circular dated November 4, 2025,” the agency said.
This step ensures that the recovered assets are used only for the benefit of creditors, no benefit goes back to the accused/promoters and full reporting and compliance safeguards remain in place until the resolution is finalised.
“This initiative shows that strict enforcement under PMLA and value maximization under IBC are not conflicting objectives,” the ED said.
Published – 05 Nov 2025 23:45 IST
