According to the ED, bank records showed unexplained cash deposits of over ₹80 crore in the personal accounts of the accused along with credits of over ₹1 trillion received from related parties who were earlier recipients of payments from the company. File image for representation only. | Photo credit: The Hindu
The Enforcement Directorate has arrested a former Richa Industries Limited (RIL) troubleshooter and remanded him in eight-day custody over allegations that he benefited from proceeds of crime (PoC) in the case.
The accused, identified as Arvind Kumar, worked from December 2018 to June 2025 as a Resolution Professional of the company.
The ED had earlier arrested former RIL promoter and suspended managing director Sandeep Gupta. Its investigation is based on a first information report registered by the Central Bureau of Investigation, which reported losses of ₹ 236 crore by public sector banks from 2015 to 2018.
The agency alleged that during Mr. Kumar’s tenure as Resolution Professional, substantial funds were diverted from RIL to individuals and entities closely associated with him. “Large payments were routed from the accounts of the corporate debtor to these intermediaries who then transferred substantial amounts back to the personal bank accounts of Arvind Kumar,” it alleged.
According to the ED, bank records showed unexplained cash deposits of over ₹80,000 in his personal accounts along with credits of over ₹1,00,000 received from his related parties who were earlier recipients of payments from the company.
Based on the findings, he was accused of projecting illegal funds as legitimate income under the guise of operations related to the company’s insolvency resolution process. He reportedly struck a deal with former RIL promoters by allowing them continuous operational control over key projects and assets and allowing their involvement in decision-making.
There was a “deliberate failure to apply for avoidance under the relevant provisions of the IBC (Insolvency and Bankruptcy Code) despite clear indicators of preferential, undervalued, fraudulent and extortionate transactions identified in the audit reports, enabling the retention and use of illicit proceeds by the original perpetrators”.
He allegedly forwarded ineligible resolution plans submitted by entities controlled by the promoter family and “grabbed” millions of funds from the parties on the pretext of selling the company or its assets to them without any authorization or proper documentation.
“Due to the actions of the RP (Resolution Professional) in orchestrating the ‘pro-promoter’ conspiracy, this resulted in a staggering 94% loss (haircut) to the public sector banks. After the liquidation of RIL, the banks have just received ₹ 40 crore against admitted claims of ₹ 708 crore… the insolvency board of RP has suspended the registration of the insolvent bank for two years and the registration of insolvency-related violations,” the ED said.
Published – 6 Feb 2026 06:12 IST
