New Delhi, Nov. 6 -- The Enforcement Directorate (ED) and the Insolvency and Bankruptcy Board of India (IBBI) have created a mechanism under which resolution professionals will give an undertaking to the courts stating that the assets of companies undergoing insolvency proceedings 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 investigative agency said on Wednesday. A circular in this regard was issued by the IBBI on Tuesday, setting a standard operating procedure (SOP) to enable the restoration of assets to the victims. "This measure is aimed at maximising value for creditors, including banks and homebuyers. In several insolvency cases, assets of the corporate debtor were under PMLA attachment, which restricted their use in the resolution process," the agency said in a statement. "This process now enables Resolution Professionals to seek release of such assets through applications under sections 8(7) and 8(8) of PMLA (which deals with restitution of properties)," it further said. As a result of this coordinated approach, ED said, "a standard undertaking to be filed by insolvency professionals before the special court has been finalised and circulated by IBBI through its circular on November 4". "The move ensures that: the restituted assets are used only for the benefit of creditors, no advantage flows back to the accused or promoters, full reporting and compliance safeguards remain in place until resolution is completed," it added. ED's latest data reveals that it has already restituted assets worth Rs.34,580 crore to creditors/victims of frauds till date, out of which over Rs.15,000 crore is linked to fugitives Vijay Mallya, Nirav Modi and Mehul Choksi. ED said that the latest initiative "demonstrates that strict enforcement under PMLA and value maximisation under IBC are not conflicting objectives"....