PMLA - Restitution of Attached Assets

 PMLA - Restitution of Attached Assets

Insolvency and Bankruptcy Board of India

7th Floor, Mayur Bhawan, Connaught Place, New Delhi – 110001

CIRCULAR

Circular No. IBBI/CIRP/87/2025                                                   4th November, 2025

To

All Registered Insolvency Professionals

All Recognised Insolvency Professional Entities

All Registered Insolvency Professional Agencies

(By email to registered email addresses and on the website of the IBBI)

Subject – Undertaking by IPs before Special Courts under PMLA

It has been observed that in certain cases under the Insolvency and Bankruptcy Code, 2016 (IBC), the assets of the corporate debtor are under attachment by the Enforcement Directorate (ED) under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA). The restitution of such attached assets can significantly enhance the value of the Corporate Debtor thereby leading to higher realization.

2. Accordingly, it is hereby advised that in cases where assets of the corporate debtor are attached by the ED under the provisions under PMLA, the Insolvency Professional may file an application before the Special Court under sections 8(7) or 8(8) of the PMLA for restitution of such assets.

3. Further, with a view to facilitate the expeditious disposal of such applications by the Special Courts, the Insolvency and Bankruptcy Board of India, in consultation with the ED, has formulated a standard undertaking to be furnished by the Insolvency Professional along with the application for restitution of assets. The said undertaking is annexed hereto with this Circular.

4. This is issued in exercise of powers conferred under section 196 of the IBC.

Yours faithfully,

Sd/-

(Rajesh Tiwari)

General Manager

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Annexure

Undertaking by Insolvency Professional before the Special Court under PMLA

[To be submitted by the Resolution Professional while filing an application under section 8(7) or section 8(8) of the Prevention of Money Laundering Act, 2002]

I, [Name], Insolvency Professional having Registration No. [______], in my capacity as Resolution Professional/Liquidator (as applicable) of [Corporate Debtor], hereby undertake that during the Corporate Insolvency Resolution process/ Liquidation Process (as applicable) of the said Corporate Debtor:

1. Usage of Restituted Assets

[Applicable only in cases where the Promoter is ineligible under Section 29A of the Insolvency and Bankruptcy Code, 2016]

• a) The restituted assets shall not be sold, transferred, or otherwise disposed of directly or indirectly to any person covered under Section 32A(2)(i) or (ii) of the Insolvency and Bankruptcy Code, 2016.

• b) The restituted assets shall not be utilised directly or indirectly in any manner that benefits any person or entity named as an accused in, or charge-sheeted under, ECIR No. [_____] by the Enforcement Directorate (ED) or any relevant predicate agency on the basis of which the ED has initiated proceedings.

2. Periodic Reporting

From the date of restitution until the approval of the resolution plan/dissolution order (as applicable) by the Adjudicating Authority, I shall submit quarterly status reports to this Hon’ble Court containing:

• a) The status of the restituted assets;

• b) Details of their usage or monetisation;

• c) A list of beneficiaries of any distribution; and

• d) Information on any sale or transfer of the restituted property.

3. Disclosures in the Insolvency Process

• a) I have disclosed in the Information Memorandum/Auction Notice (as applicable) the details of all properties under ED attachment as on date of this submission.

• b) If any further details become available subsequently, I shall disclose the same in updated versions of the Information Memorandum/ subsequent auction notices (as applicable).

4. Cooperation with ED

I will extend full cooperation to the ED during investigation, including: 

• a) Providing details of Preferential, Undervalued, Fraudulent, or Extortionate (PUFE) transactions, as and when identified by me;

• b) Providing details of the Committee of Creditors, including its constitution and percentage voting shares; and

• c) Providing details of the Successful Resolution Applicant (SRA)/ Successful Bidder (as applicable), including a copy of the application and relevant orders/proceedings of the NCLT.

5. Document Production

I further undertake to provide to the ED, as and when requested, any document or information, subject to the following:

• a) Documents that are not commercially sensitive in nature shall be furnished immediately on request;

• b) Documents that are commercially sensitive in nature (e.g. valuation reports, resolution plans, due diligence reports, etc.) shall be furnished only after the ED acknowledges such sensitivity in writing and confirms its requirement.

6. Duration of Undertaking

The obligations under this Undertaking shall remain effective until the approval of the resolution plan /dissolution order (as applicable) by the Adjudicating Authority.

Signature: ______________________

Name of IP: _____________________

Date: __________________________