India, Sept. 23 -- An insolvency process cannot be used to free properties attached by the Enforcement Directorate (ED) under the money-laundering law, a special PMLA court has ruled while refusing to release properties of NCS Sugars Ltd that were attached in connection with the alleged Rs.5,600-crore National Spot Exchange Ltd (NSEL) fraud case.

Special Judge Nitin V Jiwane on Tuesday rejected a plea by resolution professional K Sivalingam, who had sought restitution of the properties so they could be used in the company's insolvency resolution process. Sivalingam told the court that two resolution plans were being considered and that the attached properties were important for NCS Sugars' revival.

The court said, however, that assets a...