The IBC-PMLA Conflict clarifies that insolvency proceedings cannot shield assets alleged to be proceeds of crime from attachment under the PMLA.
IBC-PMLA Conflict Latest News
Background of the Case
- Siddhi Vinayak Logistics Ltd. is at the centre of this dispute. Its promoters are accused of serious financial crimes — bank fraud, forgery, criminal conspiracy, and diverting loan funds worth more than ₹1,600 crore.
- The Enforcement Directorate (ED) started action under the PMLA and provisionally attached the company’s assets in 2017. This means the ED legally seized control of these assets on the suspicion they were linked to crime.
- A few months later, the company entered the Corporate Insolvency Resolution Process (CIRP) under…