https://www.taxtmi.com/caselaws?id=792037 Fraudulent trading under Section 66 of the Insolvency and Bankruptcy Code may be established through cogent circumstances showing concealment and diversion of corporate assets. Where subsidiary shareholding was sold, the investment remained recorded in financial statements and sale proceeds were not accounted for, the persons concerned must satisfactorily explain the transactions once adequate material indicates wrongful conduct. The resulting contribution of diverted proceeds to the corporate debtor's assets was maintained. Investigation by the Serious Fraud Investigation Office, however, cannot be directly ordered by the Adjudicating Authority because the Companies Act assigns that discretion to the Central Government; the direction was set aside and referred for consideration under the prescribed procedure. en-us Wed, 20 May 2026 00:00:00 +0530 Fri, 22 May 2026 07:06:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=792037 Fraudulent trading under Section 66 of the Insolvency and Bankruptcy Code may be established through cogent circumstances showing concealment and diversion of corporate assets. Where subsidiary shareholding was sold, the investment remained recorded in financial statements and sale proceeds were not accounted for, the persons concerned must satisfactorily explain the transactions once adequate material indicates wrongful conduct. The resulting contribution of diverted proceeds to the corporate debtor's assets was maintained. Investigation by the Serious Fraud Investigation Office, however, cannot be directly ordered by the Adjudicating Authority because the Companies Act assigns that discretion to the Central Government; the direction was set aside and referred for consideration under the prescribed procedure. Case-Laws IBC Wed, 20 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=792037