The Insolvency and Bankruptcy Code 2016(IBC) will prevail over the Prevention of Money Laundering Act 2002(PMLA), and hence no attachment can be ordered under PMLA against the assets of corporate debtor undergoing insolvency process.
This was held by the National Company Law Tribunal, Mumbai bench, allowing an application moved by Resolution Professional of Sterling SEZ and Infrastructure Ltd, against which an application under Section 7 of IBC was admitted.
The Enforcement Directorate(ED) had initiated proceedings under the PMLA against Sterling on allegations of money laundering worth Rs 4274 crores. A provisional order of attachment was passed against some of the assets of Sterling by the Adjudicating Authority under the PMLA on May 29,…
Read the full article at: https://www.livelaw.in/news-updates/ibc-overrides-pmla-no-attachment-possible-under-pmla-during-insolvency-process-nclt-read-order-142930