New Delhi, Aug 12 (IANS) The Directorate of Enforcement (ED) has arrested Jitesh Gupta, an insolvency professional, under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002, on Wednesday.
Gupta had acted as interim resolution professional/resolution professional (IRP/RP) in the Corporate Insolvency Resolution Process (CIRP) of M/s Homestead Infrastructure Development Pvt. Ltd. and M/s Golden Peacock Residence Pvt. Ltd.
He was produced before the Special Court (PMLA), which remanded him to ED custody for further investigation, the agency said in a press statement.
The ED initiated the probe based on an FIR registered by the Central Bureau of Investigation (CBI) against M/s Best Foods Ltd. under various sections of the Indian Penal Code, 1860, and the Prevention of Corruption Act, 1988.
Investigation revealed that Dinesh Gupta, while in control of M/s Best Foods Ltd. and related entities, diverted loan funds through dummy and shell companies and laundered the proceeds of crime.
Further probe established that Jitesh Gupta, in his capacity as IRP/RP, suo motu re‑admitted claims that he had earlier rejected as spurious and fraudulent. This action altered the composition of the Committee of Creditors. He also facilitated a Resolution Plan that was submitted as a front for Dinesh Gupta and was funded through an entity controlled by him. In addition, Gupta recommended a person connected with Dinesh Gupta as a prospective resolution applicant.
The National Company Law Tribunal (NCLT), in its order dated September 9, 2025, recorded adverse findings against Jitesh Gupta. The Tribunal held that he had acted beyond his authority by relying on fabricated and improperly submitted documents and directed his replacement as Resolution Professional, the ED statement said.
ED investigation also uncovered a banking trail of unexplained financial transactions received by Gupta from several persons linked to Dinesh Gupta, M/s Best Foods Ltd. and its group entities. No legitimate consideration for these transactions was found on record.
The evidence collected establishes that Jitesh Gupta knowingly facilitated the process and activities connected with the proceeds of crime, thereby attracting liability under Section 3 of the PMLA, 2002, which is punishable under Section 4 of the Act.
Further investigation in the case is in progress.
–IANS
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