Carl in group morally challenged (7)
I believe the answer is:
scarlet
'morally challenged' is the definition.
The answer and definition are not the same part of speech. However, adjectives and past participle verbs can occasionally mean the same thing.
'carl in group' is the wordplay.
'in' indicates putting letters inside.
'group' becomes 'set' (both can mean a collection).
'carl' put into 'set' is 'SCARLET'.
Can you help me to learn more?
(Other definitions for scarlet that I've seen before include "Let cars be this colour" , "Clarets (anag.)" , "Red colour of clarets" , "Cherry-red" , "Fallen" .)