Fraudulent management during pre-pack insolvency can attract penalties imposed by the adjudicating authority upon resolution professional application.

Section 67A empowers the Adjudicating Authority, on application by the resolution professional, to impose a monetary penalty on any officer of the corporate debtor who, on and after the pre-packaged insolvency commencement date, manages the debtor's affairs with intent to defraud creditors or for any fraudulent purpose, with the penalty specified within a statutory range.

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