NCLAT rules ED”s PMLA powers override IBC moratorium for ”proceeds of crime” assets. Insolvency cannot shield ill-gotten wealth. Case of Siddhi Vinayak Logistics.
New Delhi, Jul 1 (PTI) The National Company Law Appellate Tribunal (NCLAT) has said the moratorium available to companies undergoing insolvency proceedings cannot be used to shield assets alleged to be proceeds of crime, while upholding actions taken by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA) against Siddhi Vinayak Logistics Ltd.
The appellate tribunal said if there has been any attachment by the ED, then the adjudicatory mechanism created under the PMLA alone will have jurisdiction to deal with it.
A three-member NCLAT bench has…