IBC scrutiny by ED: Section 29A, CoC manipulation and PMLA probes explained

Direct fact

In September 2026, the Enforcement Directorate (ED) expanded scrutiny of alleged irregularities in Insolvency and Bankruptcy Code (IBC) proceedings, after its 36th Quarterly Conference of Zonal Officers in Bengaluru on September 14-15, 2026.

Key specifics

• IBC was enacted in 2016 as a time-bound framework for insolvency resolution and value maximisation.
• Section 29A of the IBC bars specified persons from submitting resolution plans, and ED suspects circumvention through related entities.
• The Committee of Creditors (CoC) decides key commercial matters, so inflated or fictitious claims can alter voting power.
• In December 2025, ED searched Angle Infrastructure Private Limited, its resolution professional and Nauseva Buildwell LLP over an alleged undervalued sale of 2-acre land for Rs.31 crore against a valuation of Rs.160 crore.
• In February 2026, ED arrested Arvind Kumar in the Richa Industries case, where public-sector banks reportedly received Rs.40 crore against admitted claims of Rs.708 crore, a 94% haircut.

Exam lens

Polity and economy-linked governance question: IBC 2016, Section 29A, CoC, NCLT and PMLA are the key terms; TNPSC may ask who approves resolution plans and how promoter re-acquisition can happen after a steep haircut.