The Centre is in discussions with banks to work out a regulatory mechanism to transfer assets attached by various investigative agencies to a buyer or successful resolution applicant under the Insolvency & Bankruptcy Code (IBC).
At present, if investigating agencies such as the Enforcement Directorate have attached assets of a fraudulent bankrupt borrower, lenders are unable to include the asset in the corporate insolvency resolution process under the IBC.
For instance, in the case of Nirav Modi, allegedly involved in a multi-crore scam, the Enforcement Directorate moved to the Bombay High Court in March this year, challenging the special PMLA (Prevention of Money Laundering Act) court’s October 19 order that permitted the Punjab National…
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