{"id":9650,"date":"2025-11-13T17:54:39","date_gmt":"2025-11-13T17:54:39","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=9650"},"modified":"2025-12-31T14:02:18","modified_gmt":"2025-12-31T14:02:18","slug":"ibbi-ip-to-seek-restitution-of-ed-attach-asset-under-pmla","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/ibbi-ip-to-seek-restitution-of-ed-attach-asset-under-pmla\/","title":{"rendered":"IBBI: IP to Seek Restitution of ED-Attach Asset under PMLA"},"content":{"rendered":"<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4417\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/05\/NCLT-under-the-IBC-Act.jpg\" alt=\"NCLT under the IBC Act\" width=\"1111\" height=\"622\" \/><\/h2>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69dab9fae65c9\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69dab9fae65c9\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/ibbi-ip-to-seek-restitution-of-ed-attach-asset-under-pmla\/#IBBI_Directs_Insolvency_Professionals_to_Seek_Restitution_of_ED-Attached_Assets_under_PMLA\" title=\"IBBI Directs Insolvency Professionals to Seek Restitution of ED-Attached Assets under PMLA\">IBBI Directs Insolvency Professionals to Seek Restitution of ED-Attached Assets under PMLA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/ibbi-ip-to-seek-restitution-of-ed-attach-asset-under-pmla\/#A_prescribed_undertaking_must_accompany_the_application_undertaking_directions\" title=\"A prescribed undertaking must accompany the application &amp; undertaking directions\">A prescribed undertaking must accompany the application &amp; undertaking directions<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/ibbi-ip-to-seek-restitution-of-ed-attach-asset-under-pmla\/#IBBI_the_prescribed_undertaking_must_accompany_the_application\" title=\"IBBI the prescribed undertaking must accompany the application.\u00a0\">IBBI the prescribed undertaking must accompany the application.\u00a0<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"IBBI_Directs_Insolvency_Professionals_to_Seek_Restitution_of_ED-Attached_Assets_under_PMLA\"><\/span><span style=\"color: #000080;\"><strong>IBBI Directs Insolvency Professionals to Seek Restitution of ED-Attached Assets under PMLA<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Insolvency and Bankruptcy Board of India Issued Direction on 4th November 2025 Applies to all Insolvency Professionals, IP Entities, &amp; IP Agencies. Deals with cases where corporate debtor\u2019s assets are attached by the Enforcement Directorate (ED) under Prevention of Money Laundering Act, 2002 during insolvency proceedings.<\/p>\n<p>The Insolvency and Bankruptcy Board of India has issued a directive requiring Insolvency Professionals (IPs) to approach Special Courts under the Prevention of Money Laundering Act to seek restitution of assets belonging to corporate debtors attached by the ED. According to the circular, Insolvency Professionals may file applications u\/s 8(7) or 8(8) of the Prevention of Money Laundering Act for the release or restitution of such assets. The IBBI stated that this measure aims to enhance the value of the corporate debtor\u2019s estate, thereby enabling better recovery and higher realisation for creditors under the IBC process.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"A_prescribed_undertaking_must_accompany_the_application_undertaking_directions\"><\/span><span style=\"color: #000080;\"><strong>A prescribed undertaking must accompany the application &amp; undertaking directions<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This directive is part of the regulator\u2019s continued effort to ensure that assets critical to resolution are effectively recovered and brought within the insolvency process. A prescribed undertaking must accompany the application &amp; undertaking directions is mention here under :<\/p>\n<ul>\n<li>Application for Restitution: IPs should file an application before the Special Court under PMLA (Sections 8(7) or 8(8)) for restitution of attached assets.<\/li>\n<li>Insolvency and Bankruptcy Board of India issue an Standard Undertaking under Prevention of Money Laundering Act (Sections 8(7) or 8(8)) for restitution of attached assets: A prescribed undertaking must accompany the application. Key obligations include:<\/li>\n<li>Usage Restrictions: Restituted assets cannot benefit promoters ineligible under Section 29A or any accused in ED cases.<\/li>\n<li>Periodic Reporting: Quarterly reports to the Special Court on asset status, usage, and beneficiaries.<\/li>\n<li>Disclosure: Details of ED-attached properties in Information Memorandum\/Auction Notices.<\/li>\n<li>Cooperation with ED: Share details of PUFE transactions, CoC composition, and Successful Resolution Applicant.<\/li>\n<li>Document Production: Provide requested documents, with safeguards for commercially sensitive information.<\/li>\n<li>Duration: Undertaking remains effective until resolution plan approval or dissolution order.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"IBBI_the_prescribed_undertaking_must_accompany_the_application\"><\/span><span style=\"color: #000080;\"><strong>IBBI the prescribed undertaking must accompany the application.\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-9659\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/11\/undertaking_page-0001-2.jpg\" alt=\"prescribed undertaking must accompany the application\" width=\"1125\" height=\"1571\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/11\/undertaking_page-0001-2.jpg 1054w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/11\/undertaking_page-0001-2-215x300.jpg 215w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/11\/undertaking_page-0001-2-733x1024.jpg 733w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/11\/undertaking_page-0001-2-768x1073.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/11\/undertaking_page-0001-2-800x1117.jpg 800w\" sizes=\"(max-width: 1125px) 100vw, 1125px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-9660\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/11\/undertaking_page-0002-1.jpg\" alt=\"prescribed undertaking must accompany the application2\" width=\"1083\" height=\"970\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/11\/undertaking_page-0002-1.jpg 1083w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/11\/undertaking_page-0002-1-300x269.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/11\/undertaking_page-0002-1-1024x917.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/11\/undertaking_page-0002-1-768x688.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/11\/undertaking_page-0002-1-800x717.jpg 800w\" sizes=\"(max-width: 1083px) 100vw, 1083px\" \/><\/p>\n<p><span style=\"color: #333399;\"><strong>You may also review the other article <\/strong><\/span><\/p>\n<ul>\n<li><a href=\"https:\/\/www.caindelhiindia.com\/learn\/four-pillars-of-the-insolvency-bankruptcy-code\">Four Pillars of the Insolvency &amp; Bankruptcy Code<\/a><\/li>\n<li><a href=\"https:\/\/www.caindelhiindia.com\/blog\/category\/insolvency-and-bankruptcy-code\/\">Category: Insolvency and Bankruptcy Code<\/a><\/li>\n<li><a href=\"https:\/\/www.caindelhiindia.com\/blog\/checklist-of-compliance-requirements-for-rps\/\">checklist of compliance requirements for RPs under IBC<\/a><\/li>\n<li><a href=\"https:\/\/www.caindelhiindia.com\/blog\/initiation-of-liquidation-under-the-ibc\/\">Overview on Initiation of Liquidation under the IBC<\/a><\/li>\n<li><a href=\"https:\/\/www.caindelhiindia.com\/learn\/penalty-insolvency-professional-under-ibc-regulations\">Penalty Insolvency Professional under IBC regulations.<\/a><\/li>\n<li><a href=\"https:\/\/www.caindelhiindia.com\/blog\/afa-under-ibc\/\">Overview on Mandatory Requirement of AFA under IBC Code<\/a><\/li>\n<li><a href=\"https:\/\/www.caindelhiindia.com\/blog\/dos-donts-for-ips-during-moratorium-under-ibc\/\">Do\u2019s &amp; Don\u2019ts for IPs During Moratorium under IBC<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/blog\/tag\/ibc-regulation\/\">IBC Regulation<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/services\/ibc-help-homebuyers.php\">IBC Help Homebuyers<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>IBBI Directs Insolvency Professionals to Seek Restitution of ED-Attached Assets under PMLA Insolvency and Bankruptcy Board of India Issued Direction on 4th November 2025 Applies to all Insolvency Professionals, IP Entities, &amp; IP Agencies. Deals with cases where corporate debtor\u2019s assets are attached by the Enforcement Directorate (ED) under Prevention of Money Laundering Act, 2002 &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[658],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/9650"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=9650"}],"version-history":[{"count":5,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/9650\/revisions"}],"predecessor-version":[{"id":9654,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/9650\/revisions\/9654"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=9650"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=9650"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=9650"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}