The Enforcement Directorate (ED) announced on November 5, 2025, the establishment of a new mechanism concerning assets previously attached under the Prevention of Money Laundering Act (PMLA). This procedure addresses circumstances where assets belonging to corporate debtors undergoing insolvency resolution or liquidation under the Insolvency and Bankruptcy Code (IBC) were unavailable for use due to PMLA attachments. Following collaborative meetings with the Insolvency and Bankruptcy Board of India (IBBI), Resolution Professionals are now enabled to seek the release of such assets by submitting applications under Sections 8(7) and 8(8) of the PMLA. As part of this development, a standardized undertaking for Insolvency Professionals, intended for filing before the Special Court, has been finalized and circulated by IBBI via a circular dated November 4, 2025. The ED indicated that these provisions aim to facilitate the recovery process for creditors, including banks and homebuyers.
Source: https://www.thehindu.com/news/national/ed-facilitates-release-of-attached-assets-to-support-ibc-resolution-maximise-creditor-recovery/article70244729.ece