India: Money laundering law prevails over Bankruptcy Act, insolvency code: Delhi High Court

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April 14 2019

The Delhi High Court has held that the money laundering law, PMLA, prevails over the Bankruptcy Act and insolvency codewhen it comes to attachment of properties obtained as “proceeds of crime”.

The court said the Prevention of Money Laundering Act (PMLA), Recovery of Debt and Bankruptcy Act (RDBA), Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act (SARFAESI Act) and Insolvency and Bankruptcy Code (IBC) must co-exist and be enforced in harmony with the PMLA.