In a major victory for India’s Enforcement Directorate (ED), the National Company Law Tribunal (NCLT) has quashed the ongoing Corporate Insolvency Resolution Process (CIRP) against Alchemist Limited. The tribunal’s February 3 order exposed a fraudulent scheme aimed at laundering money and evading asset seizures.
The Alchemist Group had duped investors out of over ₹1,840 crore by promising high returns on plots, villas, and flats that never materialized. Funds collected by entities like Alchemist Holdings Limited and Alchemist Township India Limited were siphoned off as inter-corporate deposits to Alchemist Limited, leaving thousands of investors high and dry.
ED’s probe, spanning 2021 to 2025, led to prosecution complaints and the attachment of ₹492.72 crore in assets. The insolvency process, initiated by Sai Tech Medicare Private Limited under Section 9 of the Insolvency and Bankruptcy Code (IBC), was riddled with conflicts. The Committee of Creditors (CoC) was dominated by Alchemist Group companies, including Technology Parks Limited with 97% voting power—all under ED scrutiny for money laundering.
ED argued convincingly that the CIRP was a ploy to release attached properties under IBC Section 32A and undermine Prevention of Money Laundering Act (PMLA) proceedings. Appointing former group employee Gaurav Mishra as Resolution Professional further tainted the process’s impartiality. The ED was deliberately sidelined as a party.
NCLT agreed, invoking Section 65 of IBC to terminate the ‘fraudulent’ proceedings. ‘IBC is for genuine resolution, not to launder crime proceeds or thwart PMLA,’ the bench ruled. The moratorium under Section 14 was lifted, the RP’s appointment revoked, and Sai Tech fined ₹5 lakh.
This landmark ruling reinforces that IBC and PMLA operate independently. Misusing one to sabotage the other won’t fly. It safeguards investor interests and bolsters the fight against financial crimes, sending a strong message to corporate fraudsters.