NCLAT upholds ED PMLA powers over insolvency moratorium

📌 Summary:

• The NCLAT ruled that the moratorium available to companies under insolvency (IBC) proceedings cannot be used to shield assets alleged to be proceeds of crime
• It upheld the Enforcement Directorate (ED) actions under the PMLA against Siddhi Vinayak Logistics Ltd
• The tribunal held that once the ED attaches assets, the adjudicatory mechanism created under the PMLA alone has jurisdiction over them
• The ruling clarifies the long-contested overlap between the IBC moratorium (Section 14) and PMLA attachment powers

🎯 UPSC Relevance: GS3 (Internal Security – Money laundering) and GS2 (Governance/Economic laws) — inter-statute conflict between anti-money-laundering enforcement and insolvency resolution.

📝 Prelims Facts:

• NCLAT = National Company Law Appellate Tribunal, appellate body over NCLT under the Companies Act/IBC
• ED enforces PMLA, 2002 and FEMA, 1999
• IBC Section 14 imposes a moratorium (calm period) once insolvency admitted

🔑 Key Term: Moratorium (IBC Section 14) — a period during insolvency resolution when suits and asset transfers against the corporate debtor are stayed to preserve its value.