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I. Circular dated 4th Nov 2025 - Undertaking by IP’s before Special Courts under PMLA

In certain cases assets of the Corporate Debtor (CD) are attached by the Enforcement Directorate (ED) under the provisions of Prevention of Money Laundering Act, 2002. The restitution of such attached assets can significantly enhance the value of the CD thereby leading to higher realization

The Insolvency Professional may file an application before the Special Court under sections 8(7) or 8(8) of the PMLA for restitution of such assets.

With a view to facilitate the expeditious disposal of such applications by the Special Courts, the Insolvency and Bankruptcy Board of India, in consultation with the ED, has formulated a standard undertaking to be furnished by the IP along with the application for restitution of assets.

The undertaking creates restriction of use and transfer of asset by the IP, guideline for periodic reporting to ED and stakeholders under IBC, binds IP to give full co-operation to ED for details/documents sought and the duration for which this undertaking is applicable.

II. Circular dated 18th Nov 2025 – Strengthening due diligence under sec 29A

Various duties are casted on the Resolution Professional and Prospective Resolution Applicants as under:

• Regulation 36A(4): RP must mention in Form G the ineligibility criteria under Section 29A.

• Regulation 36A(7): PRA must submit an undertaking with the Expression of Interest confirming they are not ineligible.

• Section 30 & Regulation 39: PRA must submit an affidavit with the resolution plan confirming eligibility.

• Regulation 36A(8): RP must carry out due diligence to verify that PRAs comply with Section 29A.

• Compliance Certificate – Form H: RP must confirm that the affidavit is in order and attach a Due Diligence Certificate.

RPs are directed to place a detailed note on section 29A compliance before the CoC when resolution plans are considered and ensure that deliberations and observations of the CoC are properly recorded in the minutes.