ED Chief directs officers to pursue insolvency cases with significant losses

The Enforcement Directorate chief has directed officers to aggressively pursue insolvency cases involving substantial financial losses, commonly referred to as 'haircuts' in financial terminology.

The directive emphasizes that frauds falling under the Insolvency and Bankruptcy Code (IBC) and the Prevention of Money Laundering Act (PMLA) should be identified and investigated by different ED zones across the country.

The move aims to strengthen detection and prosecution of financial irregularities in insolvency proceedings, where creditors typically recover only a fraction of their claims.