The Enforcement Directorate (ED) has intensified its action against the irregularities in the proceedings under the Insolvency and Bankruptcy Code (IBC), carrying out arrests, searches, and facilitating restitution of attached properties to banks and homebuyers in multiple cases involving alleged fraud and money-laundering.
Earlier this month, the agency arrested Arvind Kumar, who worked as a Resolution Professional of Richa Industries Limited from December 2018 to June 2025. In the same case, pertaining to an alleged loss of ₹236 crore to public sector banks, former promoter and suspended managing director of the company, Sandeep Gupta, was also arrested previously.
The agency alleged that during Mr. Kumar’s tenure as Resolution Professional, substantial funds from Richa Industries Limited were diverted to those closely linked to him. “Bank records further show unexplained cash deposits exceeding ₹80 lakh in his personal accounts, along with credits of over ₹1 crore received from his related parties who had earlier been beneficiaries of payments from the company,” the agency said.
The accused helped set up a manipulated Committee of Creditors, handing decisive voting power to the former promoters. The purported acts of the Resolution Professional in orchestrating a “pro-promoter” conspiracy resulted in a “staggering 94% loss (haircut) to public sector banks”. After liquidation of Richa Industries Limited, banks received ₹40 crore against admitted claims of ₹708 crore, the agency said. Mr. Kumar’s registration as Resolution Professional was suspended by the Insolvency and Bankruptcy Board of India for two years for the related alleged contraventions.
