A former resolution professional of a private company, Arvind Kumar, was sent to ED custody for eight days by a Special PMLA Court in Gurugram. The Directorate of Enforcement (ED) arrested Arvind Kumar, who previously worked for Richa Industries Limited, under the Prevention of Money-laundering Act (PMLA), 2002. This action followed an investigation initiated by the ED based on an FIR registered by the CBI for criminal conspiracy, cheating, and criminal misconduct.
Arvind Kumar, during his tenure as the resolution professional, allegedly diverted substantial funds from Richa Industries through layered transactions to individuals and entities associated with him. Bank records indicated unexplained cash deposits and credits in his personal accounts, raising suspicions of money laundering. The investigation also uncovered his involvement in forming an illegal Committee of Creditors and colluding with ex-promoters to benefit them at the expense of public sector banks.
The illegal activities of the arrested resolution professional reportedly led to a significant loss for public sector banks, with only a fraction of the admitted claims being recovered after the company’s liquidation. The ED highlighted the wrongful gain obtained by Arvind Kumar and his associates, emphasizing the need to address such financial misconduct seriously.
