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Mumbai Court Discharges DHFL From Yes Bank Laundering Case Under IBC Immunity

Citing Section 32A of the IBC, the judge said the approved resolution plan wipes pre‑CIRP corporate liability.

Overview

  • Special PMLA judge R B Rote on February 2 discharged DHFL from the ED’s money‑laundering case, finding the company qualifies for statutory immunity after insolvency resolution and a change in control.
  • The court held the later‑enacted Section 32A overrides PMLA provisions for a resolved corporate debtor once a plan is approved and management passes to an unrelated owner.
  • Prosecutions continue against individuals linked to the case, including former Yes Bank chief Rana Kapoor and ex‑DHFL promoters Kapil and Dheeraj Wadhawan.
  • The ED alleges proceeds of crime of roughly ₹5,050 crore tied to Yes Bank’s 2018 investments in DHFL and purported kickbacks, with about ₹4,450 crore alleged to have flowed to DHFL.
  • DHFL’s resolution plan was approved by the NCLT in June 2021 and the business was taken over and merged into Piramal’s finance arm, with the court stressing the discharge is a legal consequence rather than a ruling on the merits.