In a significant development, the National Company Law Tribunal (NCLT) in New Delhi has revoked the Corporate Insolvency Resolution Process (CIRP) initiated against M/s Alchemist Limited. The Tribunal found that the insolvency proceedings were tainted by fraud, collusion, and malicious intent. This decision was made under Section 65 of the Insolvency and Bankruptcy Code (IBC), 2016.
The NCLT emphasized that the insolvency framework should not be abused to legitimize proceeds of crime or obstruct proceedings under the Prevention of Money Laundering Act (PMLA), 2002. The Enforcement Directorate (ED) had launched an investigation into M/s Alchemist Limited based on FIRs filed by the Kolkata Police and Uttar Pradesh Police.
It was revealed during the probe that Alchemist Holdings Limited and M/s Alchemist Township India Ltd had raised over Rs 1,840 crore from the public by promising high returns and property allotments. However, the investors did not receive the promised returns or properties, leading to allegations of fund diversion and siphoning.
The ED, in its prosecution complaint, detailed that funds were funneled to various group entities, including M/s Alchemist Limited, through inter-corporate deposits (ICDs). The agency also attached movable and immovable properties worth Rs 492.72 crore in connection with the case.
