ED facilitates release of attached assets to support IBC resolution, maximise creditor recovery

The Enforcement Directorate has taken proactive steps to support successful resolution of companies under the Insolvency and Bankruptcy Code (IBC) by enabling the restoration of assets earlier attached under the Prevention of Money Laundering Act (PMLA), said the agency on Wednesday (November 5, 2025).

“This measure is aimed at maximising value for creditors, including banks and homebuyers. In several insolvency cases, assets of the corporate debtor were under PMLA attachment, which restricted their use in the resolution process. To address this issue, multiple rounds of coordination meetings were held between the ED and the Insolvency and Bankruptcy Board of India (IBBI) to create a standard mechanism for restitution of attached assets during CIRP or liquidation,” it said.

The process now enables Resolution Professionals to seek release of such assets through applications under Sections 8(7) and 8(8) of PMLA. “As a result of this coordinated approach, a standard undertaking to be filed by Insolvency Professionals before the Special Court has been finalised and circulated by IBBI through its circular dated November 4, 2025,” said the agency.

The move ensures that the restored assets are used only for the benefit of creditors, no advantage flows back to the accused/promoters, and full reporting and compliance safeguards remain in place until resolution is completed.

“This initiative demonstrates that strict enforcement under PMLA and value maximisation under IBC are not conflicting objectives,” the ED said.