IBBI Issues Standard Undertaking to Speed Release of ED-Attached Assets under PMLA

  • Blog|News|Insolvency and Bankruptcy Code|
  • < 1 minute
  • By Taxmann
  • |
  • Last Updated on 6 November, 2025

Latest from Taxmann

ED-Attached Assets under PMLA

Circular No. IBBI/CIRP/87/2025 dated 04.11.2025

The Insolvency and Bankruptcy Board of India (IBBI) has issued an advisory to Insolvency Professionals (IPs) addressing situations where the assets of corporate debtors are attached by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act, 2002 (PMLA).

1. Proactive Action Required from Insolvency Professionals

IBBI has emphasised that IPs must take timely and proactive steps to seek release of such attached assets, as they are critical for running Corporate Insolvency Resolution Processes (CIRP), maximising value, and protecting stakeholder interests.

2. Introduction of Standard Undertaking for Faster Asset Release

To streamline the process, IBBI has introduced a standard undertaking format that IPs must submit along with applications filed before Special Courts.

This undertaking is expected to:

  • Ensure uniformity in submissions
  • Address recurring legal concerns
  • Facilitate faster restitution of assets to the insolvency estate
  • Reduce procedural delays

3. Objective Behind the Advisory

By standardising the approach, IBBI aims to:

  • Improve efficiency in CIRP/Liquidation
  • Prevent loss of asset value due to prolonged attachment
  • Strengthen coordination between insolvency authorities and ED
  • Support smoother resolution and liquidation outcomes

4. Key Takeaway

In cases where ED-attached properties belong to the corporate debtor, IPs must promptly initiate necessary legal steps and include the prescribed undertaking to expedite release of assets for insolvency proceedings.

Click Here To Read The Full Circular

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied

Leave a Reply

Your email address will not be published. Required fields are marked *

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied