The National Company Law Tribunal (NCLT) recalled the Company Insolvency Resolution Process (CIRP) initiated in Alchemist Limited, saying it was vitiated by fraud, collusion and mala fide as allegedly found by the Enforcement Directorate.
The NCLT, exercising its powers under Section 65 of the Insolvency and Bankruptcy Code (IBC), held that the insolvency framework cannot be misused as a shield to legitimize proceeds of crime (PoC) or to thwart proceedings under the Prevention of Money Laundering Act (PMLA).
According to the agency, the ED has initiated an investigation against Alchemist Limited under PMLA based on First Information Reports registered by the police in West Bengal and Uttar Pradesh. Alchemist Holdings Limited and Alchemist Township India Limited were found to have allegedly collected more than ₹1,840 crore from people on the pretext of offering high returns / plots / villas / flats to investors.
However, the investors, it was claimed, neither got their money back nor were they given the promised plots/villas/flats/high returns. The funds were instead diverted to other Alchemist Group companies, including Alchemist Limited. Based on these findings, the ED filed a charge sheet and provisionally attached properties worth ₹492.72 crore.
An application was made under Section 9 of the IBC to initiate CIRP against Alchemist Limited by Sai Tech Medicare Private Limited. A Committee of Creditors (CoC) was subsequently set up and dominated almost entirely by the Alchemist Group entities themselves, with Technology Parks Limited holding about 97% of the voting rights, the ED said.
The agency placed before the NCLT “detailed material” showing that the dominant members of the CoC were money laundering accused groups and PoC beneficiaries. These reportedly included Technology Parks Limited (97% voting share), Alchemist Township India Limited (1.74%) and Alchemist Realty Limited (0.61%).
According to the ED, the insolvency process was used as a means to recover attached assets and invoke the immunity under Section 32A of the IBC. “A former employee of the Alchemy Group, namely Shri Gaurav Misra, has been appointed as a resolution professional, raising serious concerns about independence and fairness. Despite specific directions from the NCLT, the ED was deliberately not invoked on time, indicating mala fide intent,” the agency said.
The NCLT accepted the submission of the ED and held that a CIRP controlled by accused group entities fundamentally undermines the independence and business acumen of the CoC and allowing such a CIRP to continue would legitimize the PoC, dilute the appendices of the PMLA and abuse immunity from insolvency.
“The insolvency proceedings in this case were initiated and conducted with fraudulent and malicious intent, directly attracting Section 65 of the IBC,” it said.
Accordingly, the Tribunal revoked the CIRP, lifted the moratorium as declared under Section 14 of the IBC, and set aside the appointment of the resolution expert and his decision. According to the agency, a penalty of Rs 5 lakh was also imposed in the hands of the operating lender, Sai Tech Medicare Private Limited.
Published – 05 Feb 2026 20:43 IST
