Assets Of Corporate Debtor Attached Under PMLA Are Not Part Of Resolution Estate, NCLT Cannot Direct Release Even If Attached During CIRP: NCLAT

The NCLAT has ruled that assets of a corporate debtor attached under PMLA are not part of the resolution estate, and ED cannot be directed by NCLT to release assets even if attached during CIRP. This landmark decision clarifies the supremacy of the Prevention of Money Laundering Act (PMLA) over the Insolvency and Bankruptcy Code (IBC) regarding attached assets. The NCLAT held that once ED attaches properties as proceeds of crime, they are outside the purview of the insolvency process, and the NCLT cannot compel their release. This protects the integrity of anti-money laundering investigations.