NCLT Under IBC Is Not Empowered To Direct De-Attachment Of Property Attached Under PMLA By ED: NCLT Bengaluru

The NCLT Bengaluru has ruled that it is "not empowered to direct de-attachment of property attached under PMLA by the Enforcement Directorate." The tribunal's decision clarifies a key jurisdictional aspect, emphasizing that the NCLT's powers under the IBC do not supersede those of the ED under the PMLA. This ruling is a crucial reminder that a company's assets, if attached under money laundering laws, cannot be released by the NCLT, thereby preventing the use of insolvency proceedings to bypass the PMLA.