Overview
- Issued on November 4 after coordination with the ED, the guidance enables applications under PMLA Sections 8(7) and 8(8) for restitution during CIRP or liquidation.
- The prescribed undertaking ensures restored assets benefit creditors such as banks and homebuyers, with no advantage flowing to accused promoters or related parties.
- Insolvency professionals must submit quarterly reports to the Special Court on use and distribution of restituted property and disclose ED-attached assets in information memoranda and auction notices.
- Cooperation obligations include sharing PUFE transaction findings, Committee of Creditors details, and information on successful resolution applicants with the ED, with safeguards for commercially sensitive data.
- Legal experts say the move harmonizes IBC resolution with PMLA enforcement, though initial ED attachments remain possible and real-world speed depends on how special courts and the NCLT implement the framework.