ED: IBC norms misused for laundering in RCFL cases

The IBBI cancelled Chandra Prakash Jain's registration as a resolution professional. This action followed an ED probe into ten insolvency cases linked to Reliance Commercial Finance. The investigation revealed Jain allegedly ignored significant financial red flags and due diligence requirements. The IBBI stated the IBC framework was misused for tax avoidance and money laundering. Creditors received only Rs 30 lakh against admitted claims totaling Rs 1,433 crore.