Sterling Biotech case: Appellate authority upholds IBC over PMLA

The Resolution Professional of Sterling Biotech's subsidiary, PMT Machines, had approached the appellate authority with a plea that the properties were incorrectly attached by the ED

In a ruling upholding the prevalence of the Insolvency and Bankruptcy Code (IBC) over the Prevention of Money Laundering Act (PMLA), the appellate authority of the PMLA has released some properties, belonging to PMT Machines, a subsidiary of debt-laden Sterling Biotech, attached by the Enforcement Directorate (ED).

The Resolution Professional (RP) of PMT Machines had approached the appellate authority with a plea that the properties were incorrectly attached by the ED as they had been acquired before the “alleged commission of offences and charges were created prior to the date of alleged offences”.

The appellate authority for PMLA, in its judgment, said