The National Company Law Appellate Tribunal ('NCLAT') has on July 2, 20191 held that the properties of a corporate debtor which are attached by the Director of Enforcement under Section 5(1) of the PMLA fall within the definition of 'Proceeds of Crime' under Section 2(1)(u) of the PMLA and such properties cannot be a part of a resolution plan by under the Insolvency & Bankruptcy Code, 2016 ('IBC').
1 Rototmac Global Private Limited (through Anil Goel, Liquidator) v. Deputy Director, Directorate of Enforcement, Company Appeal (AT) (Insolvency) No. 140 of 2019 (NCLAT).
Orignianlly published September 30, 2019.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.