ED arrests former Resolution Professional of Richa Industries Limited

The Enforcement Directorate has arrested the former Resolution Professional of Richa Industries Limited (RIL) and taken him into eight-day custody in connection with the allegation that he was a beneficiary of the Proceeds of Crime (PoC) in the case.

The accused, identified as Arvind Kumar, worked the company’s Resolution Professional from December 2018 to June 2025.

The ED had earlier arrested RIL’s former promoter and suspended managing director, Sandeep Gupta. Its probe is based on a First Information Report registered by the Central Bureau of Investigation alleging losses to the public sector banks to the tune of ₹236 crore from 2015 to 2018.

The agency alleged that during Mr. Kumar’s tenure as Resolution Professional, substantial funds from RIL were diverted to individuals and entities closely linked to him. “Large payments were routed from the corporate debtor’s accounts to these intermediaries, who then transferred significant amounts back to Arvind Kumar’s personal bank accounts,” it alleged.

According to the ED, bank records showed 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.

Based on the findings, he has been accused of projecting illicit funds as legitimate receipts under the guise of Corporate Insolvency Resolution Process-related operations. He allegedly colluded with the former RIL promoters by allowing them continued operational control over key projects and assets, authorising their involvement in decision-making.

There was “deliberate non-filing of avoidance applications under relevant IBC (Insolvency and Bankruptcy Code) provisions despite clear indicators of preferential, undervalued, fraudulent, and extortionate transactions identified in audit reports, enabling the retention and enjoyment of illicit proceeds by the original perpetrators”.

He allegedly forwarded ineligible resolution plans submitted by entities controlled by the promoter-family and “grabbed” crores of funds from parties on the pretext of sale of company or its assets to them without any authorisation or proper documentation.

“Due to acts of RP (Resolution Professional) in orchestrating a ‘pro-promoter’ conspiracy, it has resulted in a staggering 94% loss (haircut) to public sector banks. After liquidation of RIL, banks have just received ₹40 crore against the admitted claims of Rs.708 crore…the RP’s registration was suspended by the Insolvency and Bankruptcy Board of India for two years on related contraventions,” the ED said.