IBBI Directs Insolvency Professionals to Seek Asset Restitution Under PMLA

Imagine a company is in financial trouble and needs help.

Sometimes, the government's Enforcement Directorate (ED) freezes or takes away some of the company's valuable things because they suspect they were involved in illegal money activities.

Now, a group called the IBBI is telling the people helping the company (insolvency professionals) that they can ask a special court to return those frozen things.

This is so the company can have more value to pay back its debts.

To do this, the insolvency professionals have to promise they will use the returned assets correctly and not let anyone accused of illegal money activities benefit from them.

They also need to tell the court what they're doing with the assets every few months.