Introduction
The relationship between the Insolvency and Bankruptcy Code, 2016 (IBC) and the Prevention of Money Laundering Act, 2002 (PMLA) has become one of the most significant areas of contemporary financial jurisprudence in India. Both statutes pursue important but distinct public objectives. The main purpose of the IBC is to ensure that the company undergoing insolvency proceedings is revived or liquidated expeditiously within a stipulated timeframe, whereas the objective of PMLA is to identify, attach and confiscate the proceeds of crime arising out of a criminal activity and to prosecute economic offenders.
When these two statutory regimes intersect, particularly in cases involving large corporate frauds, the resulting legal tensions can be complex. In recent years, the challenge has been to ensure that enforcement actions under the PMLA do not unnecessarily frustrate legitimate insolvency resolution processes, while simultaneously preserving the ability of the State to
