Understanding Insolvency Fraud and Asset Stripping Before Bankruptcy

By the time a company is admitted into insolvency, the most valuable assets have often already left the building. Brands move to promoter entities, cash leaves as advances to suppliers that never deliver, the parent's debts get secured on the subsidiary's land, and friendly creditors appear on the claims list. The Insolvency and Bankruptcy Code gives resolution professionals and lenders the tools to reverse this: preferential, undervalued, fraudulent and extortionate transactions under Sections 43 to 51, and personal liability for fraudulent and wrongful trading under Section 66. This advanced concept course is for senior forensic auditors, chief compliance officers and financial crime investigators. It covers the asset stripping playbook used in Indian promoter-led groups, the legal tests and look-back periods for each avoidance transaction, how the CoC process itself gets manipulated, how a forensic transaction audit is scoped and run under the CIRP Regulations, and what happens to avoidance recoveries and parallel ED, CBI and SFIO proceedings after a resolution plan is approved, with Jaypee Infratech, DHFL, Bhushan Power and Steel and other Indian cases throughout. Educational content only, not investment or legal advice.