NCLT sets precedent in Shakti Bhog insolvency case
The National Company Law Tribunal (NCLT) just decided that if a company is being investigated by the Enforcement Directorate (ED) for money laundering, it can't be dissolved through insolvency.
This specifically impacts Shakti Bhog Foods Limited, which is accused of diverting over ₹3,200 crore in loans.
The NCLT said dissolving such firms could disrupt ongoing money laundering cases and let them dodge criminal charges.
Decision makes sure assets stay available for investigations, prosecution
This move puts criminal accountability ahead of simply closing down troubled companies.
For young professionals and entrepreneurs, it means legal cases will take priority over quick business exits when serious financial crimes are involved.
The decision also sets a new standard—making sure assets stay available for investigations and prosecution, even if it slows down the insolvency process.