State Bank Chairman Rajnish Kumar on Tuesday said the Enforcement Directorate and other central law enforcement agencies should restrict to attaching personal assets while investigating a promoter and keep off the company which is under the insolvency process.
“Any action which ED or any other central authority has to take, they can take with the existing promoters and attach their personal assets leaving their companies away,” he said. Kumar said the agencies should follow this rule especially in case of companies which are undergoing bankruptcy process, as new suitors are “not fools” to risk their money.
“The person acquiring a company cannot be subjected to any harassment by any agencies and I am sure that will be guaranteed now,” Kumar said, adding as per the spirit of the bankruptcy code, an acquirer needs a “clean asset”.
It can be noted that over the weekend ED had attached assets worth Rs 4,025 crore while probing money laundering linked to an alleged bank loan fraud against the BPSL promoters. This was challenged by JSW Steel at the NCLAT, which on Monday had slammed the ED, saying the bankruptcy code would fail if the agency functioned like this and ordered the property be released.