{
  "id": 7654438,
  "title": "ED flags bankruptcy code frauds, ‘disproportionate’ haircuts as thrust areas",
  "url": "https://urgent.news/2026/09/15/ed-flags-bankruptcy-code-frauds-disproportionate-haircuts-as-thrust",
  "topic": "world",
  "section": "World",
  "published": "2026-09-15T23:12:28.000Z",
  "source": {
    "name": "The Indian Express",
    "slug": "the-indian-express",
    "url": "https://indianexpress.com/article/india/ed-flags-bankruptcy-code-frauds-disproportionate-haircuts-as-thrust-areas-10879648/"
  },
  "original_language": "en",
  "account": "The Enforcement Directorate (ED) has identified frauds under the Insolvency and Bankruptcy Code (IBC) as a key area of focus, particularly in re-examining collusive resolution cases involving large haircuts that allow promoters to re-acquire assets. This comes after the National Company Law Tribunal (NCLT) allowed Essel Group founder Subhash Chandra to settle his insolvency proceedings by paying just 6.25 crore rupees, against claims totaling 22,006.57 crore rupees. The NCLT subsequently stayed the settlement order.\n\nAt its 36th Quarterly Conference of Zonal Officers, the ED highlighted several \"core operational thrust areas,\" including the identification of frauds under the IBC and the Prevention of Money Laundering Act (PMLA). Recurring malpractices such as circumvention of Section 29A, inflation of related-party claims, manipulation of the Committee of Creditors, asset stripping, and artificially large haircuts were discussed. Section 29A prevents defaulting promoters and connected parties from bidding for their own company during insolvency.\n\nThe ED also emphasized the importance of coordination with state police and other law enforcement agencies, expediting trials, pursuing restitution of attached and confiscated assets, and mandating government-approved valuations of confirmed attached properties. They noted that cases pending for over ten years should be reviewed monthly by the head of each zone, with plea bargaining and non-conviction based confiscation considered in certain eligible cases.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Indian Express - India",
        "title": "ED flags bankruptcy code frauds, ‘disproportionate’ haircuts as thrust areas",
        "url": "https://urgent.news/2026/09/15/ed-flags-bankruptcy-code-frauds-disproportionate-haircuts-as-thrust-7656622",
        "published": "2026-09-15T23:12:28.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}