ED identifies bankruptcy code frauds and questionable debt haircuts as key enforcement focus

The Enforcement Directorate has identified fraudulent activities within India's bankruptcy code framework and what it describes as disproportionate haircuts granted to creditors as key thrust areas for enforcement action.

The ED's focus on these issues reflects growing scrutiny of insolvency proceedings and the manner in which creditors' claims are being settled during corporate restructuring processes. The agency aims to investigate potential irregularities and financial impropriety in these transactions.