Overview

• IBBI chair Ravi Mital said the board and the Enforcement Directorate have agreed on a way forward and expect to issue a circular within one to two months, pledging to preserve the integrity of both laws.
• An ED protocol already advises resolution professionals to seek release of attached assets through special PMLA courts so those assets can be included in insolvency proposals.
• Legal friction persists because both statutes assert primacy, and recent Supreme Court rulings, including Kalyani Transco v. Bhushan Power & Steel, limit insolvency tribunals from interfering with ED attachment powers as another case remains pending.
• IBBI is drafting regulations that incorporate Supreme Court directions in recent real-estate rulings and is preparing for the IBC Amendment Bill 2025 now with a parliamentary select committee.
• The stakes are high in real estate and construction, which represent over a third of admitted insolvency cases, and homebuyers are treated as bona fide claimants under PMLA with ED no-objection certificates issued in some verified cases.