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The Enforcement Directorate held its 36th Quarterly Conference of Zonal Officers on 14-15 September 2026 at IIM Bangalore, chaired by Director Rahul Navin.
It made frauds under the Insolvency and Bankruptcy Code, 2016 — especially disproportionately large haircuts letting promoters regain assets — a key operational focus.
Zonal offices were told to identify red flags, file intervention applications before the NCLT and open independent PMLA probes.
Creditors recovered about 29% of admitted claims across 1,077 resolved cases in FY22-FY26, falling to a five-year low of 20% in FY26.
The ED's sanctioned strength is to rise from 2,029 to 3,256 posts, with 50 PMLA zones and 5 FEMA zones from 1 January 2027.
Time-bound resolution of insolvency; its aim is to rescue viable businesses, not simply to recover debt
Bars wilful defaulters, defaulting promoters and connected persons from bidding for their own companies' assets — the provision ED says is being evaded
Moratorium that temporarily halts specified legal proceedings against the corporate debtor
Shields the corporate debtor and its assets from prosecution after control passes to an unrelated successful resolution applicant; the Supreme Court upheld it in Manish Kumar v. Union of India (2021)
Lets the ED attach and confiscate proceeds of crime — this can clash with the IBC moratorium and Section 32A immunity
Enforces PMLA, 2002, FEMA, 1999 and the Fugitive Economic Offenders Act, 2018; under the Department of Revenue, Ministry of Finance
Adjudicating authority for corporate insolvency under the IBC; set up under the Companies Act, 2013
Regulator of the insolvency process and of insolvency professionals, set up under the IBC in 2016
Financial creditors who vote on the resolution plan — ED flagged manipulation of the CoC
The share of their admitted claims that creditors give up when a resolution plan is approved. A deep haircut can be genuine where assets have lost value, but it becomes fraud if valuations are rigged so a connected party buys the company back cheaply.
Simple Analogy: Selling your house to your own cousin at a tenth of its value.
GS Paper 3 > Indian Economy > Banking, NPAs and insolvency; Money laundering
General Awareness > Banking reforms and regulators
IBC bar on defaulting promoters and connected persons bidding for their own insolvent firms
IBC immunity for the corporate debtor after a genuine change of control
Financial creditors who approve or reject a resolution plan