PMLA vs IBC: Experts explain why battle for primacy is far from over

In a bid to make way for a better insolvency resolution process, the Union Cabinet has approved a set of amendments to the Insolvency and Bankruptcy Code (IBC) through the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019. Primary among the amendments was the insertion of Section 32A, which indemnifies the corporate debtor from past criminal liabilities. But would it put an end to the battle of primacy between two overlapping laws — the Prevention of Money Laundering Act (PMLA) and the IBC? Experts are sceptical about how it will play out.

One of the 12 big-ticket NPAs (non-performing assets) recommended