IBC resolution plan immunity from money-laundering: corporate debtor removed as accused; cases continue against ex-directors, attached assets refunded.

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Full Text of the Document

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....Section 32A of the IBC was applied to determine whether money-laundering proceedings could continue against a corporate debtor whose resolution plan had been approved and substantially implemented. Since the statutory immunity attaches post-resolution, the corporate debtor was directed to be deleted from the array of accused, while prosecution could continue against erstwhile directors/persons in control and other conspirators/abettors, including confiscation of their own attached assets, if any. The protection was made conditional on the successful resolution applicant being unconnected with prior management and not a beneficiary of proceeds of crime; if investigation undermines this foundation, the enforcement agency may proceed in accord.........