Gurugram, Feb 5 (LatestNewsX) A Special PMLA Court in Gurugram sent a private company’s former resolution professional (RP), arrested for illegal diversion of funds, to ED custody for eight days, an official said on Thursday.
The Directorate of Enforcement (ED), Gurugram Zonal Office, had arrested Arvind Kumar, former RP of Richa Industries Limited, under the provisions of the Prevention of Money-laundering Act (PMLA), 2002, on February 3, an official statement said.
He was produced before the Special Court, Gurugram, which granted eight days of ED custody, said the statement.
Earlier, the company’s ex-promoter and suspended MD Sandeep Gupta was arrested under Section 19 of the PMLA.
The ED initiated an investigation on the basis of an FIR registered by the CBI under various Sections of the IPC, 1860 and the Prevention of Corruption Act, 1988, for the commission of offences of criminal conspiracy, cheating and criminal misconduct.
The accused caused wrongful gain to themselves and caused substantial losses to the public sector banks to the tune of Rs 236 Crore during 2015 and 2018, the ED said.
The investigation findings reveal the personal enrichment by Arvind Kumar, establishing his direct and active involvement in money laundering, the ED said.
During his tenure as the resolution professional, substantial funds from Richa Industries were diverted through layered transactions to individuals and entities closely connected to him, including associates and employees linked to his own business interests, the ED said.
Large payments were routed from the corporate debtor’s accounts to these intermediaries, who then transferred significant amounts back to Arvind Kumar’s personal bank accounts, it said.
Bank records further showed unexplained cash deposits exceeding Rs 80 lakh in his personal accounts during the period of his appointment, along with credits of over Rs 1 crore received from his related parties who had earlier been beneficiaries of payments from the company, it said.
The investigation findings revealed that the arrested RP was a beneficiary of the Proceeds of Crime generated from the original bank fraud, projecting illicit funds as legitimate receipts under the guise of CIRP-related operations, the ED said.
Investigations revealed that the arrested RP was involved in the constitution of an illegal and manipulated Committee of Creditors (CoC) by knowingly admitting sham and inflated claims of unsecured financial creditors, many of them dummy/proxies controlled by the ex-promoters who masterminded the bank fraud, thereby handing decisive voting power to the suspended promoters and sidelining genuine public sector bank creditors.
He was also accused of collusion with ex-promoters by allowing them continued operational control over key projects and assets, authorising their involvement in decision-making, and failing to intervene in arrangements that diverted valuable opportunities and funds to newly formed entities for the personal benefits of suspended directors.
The illegal acts of RP in orchestrating a “pro-promoter conspiracy, have resulted in a staggering 94 per cent loss (haircut) to public sector banks. After liquidation of the company, banks have just received Rs 40 crore against the admitted claims of Rs 708 crore”, the ED said.
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