In a significant move aimed at resolving long-pending insolvency cases, the Enforcement Directorate (ED) and the Insolvency and Bankruptcy Board of India (IBBI) have jointly formulated a Standard Operating Procedure (SOP) for the return of assets seized under the Prevention of Money Laundering Act (PMLA). Under the new framework, assets seized from insolvent companies and their promoters can now be restored to legitimate claimants — including banks, homebuyers, and other creditors.
This initiative is expected to accelerate the insolvency resolution process and help settle several cases currently pending in various courts….