New Delhi, Oct. 3 -- The Insolvency and Bankruptcy Board of India (IBBI) and the Enforcement Directorate (ED) have arrived at a solution to address the problem related to the interface between the insolvency law and the PMLA in resolving stressed assets. "I hope that in a month or two, we should be able to issue a circular as to how to go about it so as to solve the problem," IBBI Chairperson Ravi Mital said on Wednesday.

There have been issues in the resolution of certain cases under the Insolvency and Bankruptcy Code (IBC) where there have been suspected assets involving black money. Under the Prevention of Money Laundering Act (PMLA), the Enforcement Directorate (ED) can attach such assets. The IBC provides a moratorium on assets of a...