Mumbai Court Discharges Dunar Foods from NSEL Scam Proceedings Under IBC Section 32A

Dunar Foods Ltd, an accused in the ₹120 crore National Spot Exchange Limited (NSEL) Scam, has been discharged from criminal proceedings under Section 32A of the Insolvency and Bankruptcy Code (IBC).

The Mumbai court ruled that despite the company’s past involvement, it is entitled to immunity after its resolution plan was approved and management changed in 2019. 

Section 32A protects new management from liability for prior offenses committed by the corporate debtor.

The court dismissed the CBI's objections, emphasizing that the provision aims to ensure economic revival without penalizing incoming management for past misconduct.