The interplay between PMLA and IBC, specifically with respect to the effect of Section 32A over attached properties, is constantly evolving, mostly in favour of the SRAs to grant them a “clean slate” and to protect the larger economic benefit.
The release of properties attached by ED under PMLA, pursuant to approval of the Resolution Plan under IBC is still not automatic. However, in view of Section 32A(2), the Supreme Court’s confirmation of that provision in Manish Kumar, the extinguishment of pre-approval claims under Section 31(6), and the Appellate Tribunal’s ruling in Viceroy Hotels, an SRA’s case for release and restoration of attached properties, now rests on a very strong footing.