Legal Exoneration and the IBC’s “Clean Slate”
A Mumbai Special Prevention of Money Laundering Act (PMLA) Court has discharged Piramal Finance, the successor entity to Dewan Housing Finance Corporation Limited (DHFL), from a significant ₹5,050 crore money laundering case. The February 2, 2026 ruling, applying Section 32A of the Insolvency and Bankruptcy Code (IBC), grants the company statutory immunity. This legal reprieve hinges on the “clean slate” principle, allowing a newly acquired entity, post-Corporate Insolvency Resolution Process (CIRP), to disassociate from past liabilities. The court emphasized that the new management should be permitted to “make a clean break with the past and start on a clean slate.”
The…