IBBI Circular: Restoring Assets Attached by ED Under PMLA
Why in the news
The IBBI issued a circular on 4 November 2025 to ease the clash between PMLA and the IBC, aiming at better creditor recovery and smoother rescue of stressed firms.
Key facts
- Problem: ED attachment discourages investors; PMLA permits attaching crime proceeds while IBC shields a bankrupt firm’s assets during resolution.
- Route: applications before special courts under Sections 8(7) or 8(8) of PMLA; courts may direct the government to restore the assets to the corporate debtor.
- Format: IBBI and ED jointly drafted a standard undertaking.
Conditions
- No sale or transfer to promoters, related parties or anyone tied to the offence, and no benefit to persons under ED probe.
- Quarterly status reports and cooperation with ED.
Exam angle
- Regulator: IBBI; agency: ED; laws: PMLA and IBC.