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The Insolvency and Bankruptcy Board of India ("IBBI"), through circular no. IBBI/CIRP/87/2025 dated 04.11.2025, has issued a standard undertaking format for Insolvency Professionals ("IPs") to be submitted before Special Courts under the Prevention of Money Laundering Act, 2002 ("PMLA").
The circular is issued in view of the observations on assets of corporate debtors undergoing insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 ("IBC") that are frequently attached by the Enforcement Directorate ("ED") under the PMLA. Accordingly, IPs may file applications for restitution of assets attached by the ED before the Special Court under Sections 8(7) or 8(8) of PMLA.
Key provisions of the standard undertaking are as follows:
- In case of eligibility of Promoter under Section 29A of IBC, restriction on sale, transfer, or disposal of the restituted assets to persons covered under Section 32A(2)(i) or (ii) of the IBC or involved in benefiting a person named as an accused in, or charge-sheeted in any proceedings initiated by ED or any relevant predicate agency.
- IPs to provide quarterly status reports to the Special Court on the restituted assets, including their status, use, beneficiaries and sale/ transfer.
- Mandatory disclosures of all attached properties in information memorandum and auction notices including any subsequent updates.
- Full cooperation with the ED, including sharing details of Preferential, Undervalued, Fraudulent, or Extortionate ("PUFE") transactions, Committee of Creditors ("CoC"), and Successful Resolution Applicant ("SRA").
- Furnishing non-sensitive documents to the ED upon request and commercially sensitive documents to be furnished only upon written acknowledgment of sensitivity and confirmation of requirement by the ED.
- Continued effect of the undertaking until approval of resolution plan or dissolution order by the Adjudicating Authority.
Footnote
* Undertaking by IPs before Special Courts under PMLA.
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.
