India, Nov. 5 -- The Enforcement Directorate (ED) and Insolvency and Bankruptcy Board of India (IBBI) have created a mechanism for resolution professionals to give undertakings to the court stating that the assets of companies undergoing insolvency proceedings and attached under the Prevention of Money Laundering Act (PMLA) can only be used for the benefit of creditors, such as banks and homebuyers, and shall not flow back to the promoters or other accused persons.

The IBBI issued a circular in this regard on Tuesday, setting a standard operating procedure to enable asset restoration to the victims.

In a statement on Wednesday, the ED said it has taken proactive steps to support successful resolutions under the Insolvency and Bankruptcy...