Dissolution Under IBC Can't Be Used To Frustrate Ongoing PMLA Proceedings: NCLT Delhi

The NCLT Delhi has ruled that dissolution under IBC cannot be used to frustrate ongoing PMLA proceedings. This crucial decision clarifies the interplay between insolvency laws and anti-money laundering regulations. The NCLT emphasized that even if a company is dissolved under the Insolvency and Bankruptcy Code, assets linked to money laundering remain subject to investigation and attachment under the Prevention of Money Laundering Act. This ruling reinforces the primacy of PMLA in seizing proceeds of crime, ensuring that illicitly acquired assets cannot be shielded from enforcement by initiating insolvency or dissolution processes.