Scrap IBC Now: How Section 32A Buried Section 66 | The DHFL Case (Video) by DebaprasadBandyopadhyay Via Flickr: onceinabluemoon2021.in/2026/04/07/scrap-ibc-now-how-secti... In the DHFL insolvency — India’s first major NBFC case under the IBC — over 2.5 lakh retail depositors, including pensioners and widows, suffered heavy haircuts of 54–77% on their life savings. Yet the company emerged spotless in Piramal’s hands, fully discharged from a ₹5,050 crore PMLA case in February 2026 under Section 32A of the IBC. Inserted retrospectively via ordinance on 28 December 2019 — just 25 days after DHFL entered CIRP — this “clean slate” provision granted the new owner complete immunity from past offences, even as ₹45,000 crore in alleged fraud recoveries were valued at one rupee. Like Valmiki’s Ramayana, which existed before Rama’s birth and reconfigured reality itself, Section 32A rewrote corporate accountability after the fact (POST-FACTO), turning a law meant to protect creditors into a sophisticated mechanism that socialised losses and privatised gains for cronies like Piramal. The DHFL case stands as a stark example of how retrospective legislation can erase liability while ordinary citizens bear the burden.
