{
  "id": 7656622,
  "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",
  "topic": "world",
  "section": "World",
  "published": "2026-09-15T23:12:28.000Z",
  "source": {
    "name": "The Indian Express - India",
    "slug": "the-indian-express-india",
    "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 \"re-examination of collusive resolution cases involving disproportionately large haircuts\" as a key area of focus. This follows a recent ruling by the National Company Law Tribunal (NCLT) allowing Subhash Chandra, founder of the Essel Group, to settle his personal insolvency proceedings for a relatively small sum compared to the admitted claims. The ED also highlighted fraudulent practices such as circumvention of Section 29A, inflation of related-party claims, manipulation of the Committee of Creditors, and artificially large haircuts. These issues often result in promoters regaining control of assets after insolvency. The ED has been examining cases where companies use the insolvency process to evade prosecution and protect those responsible. The ED also discussed legal tensions between the moratorium under Section 14 of the Insolvency and Bankruptcy Code (IBC) and immunity under Section 32A when a new buyer takes over. The agency aims to identify red flags, obtain documents from resolution professionals, file intervention applications, and conduct independent investigations under the Prevention of Money Laundering Act (PMLA).",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Indian Express",
        "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",
        "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."
}