Each stage of the CIRP is strategically utilised by the accused to avoid the consequences of law and to frustrate statutory proceedings. The primary object of attachment under Section 5 of the PMLA, 2002 is to preserve and protect tainted properties from being transferred, concealed, or alienated during investigation and adjudication. However, insolvency proceedings are often invoked as a mechanism to circumvent such attachment proceedings. From the imposition of moratorium under Section 14 of the IBC to the approval and implementation of the resolution plan, various stages of the CIRP are used to delay, obstruct, or defeat the attachment of properties identified as “proceeds of crime”.
In view of the objectives and scope of both…