IBC vs PMLA: Resolution professionals hope for timely resolution

The IBBI circular allows resolution professionals to seek restitution of assets attached under PMLA, but experts say its success depends on timely court orders and clear legal backing

The latest circular by the insolvency regulator to resolve the long-standing friction between Insolvency and Bankruptcy Code (IBC) and the Prevention of Money Laundering Act (PMLA) has provided a clear direction to resolution professionals (RPs) but experts believe that its effectiveness would depend on legislative amendment or judicial pronouncement.

 

In the circular dated November 4, the Insolvency and Bankruptcy Board of India (IBBI) enabled RPs to approach the special courts handling PMLA cases involving financial crimes.

 

“The restitution of such attached assets can significantly enhance the value of the Corporate Debtor, thereby leading to higher realisation,” the IBBI