New Delhi, Feb 5, 2026
In a relief to the ED, the National Company Law Tribunal (NCLT), New Delhi, has recalled the Corporate Insolvency Resolution Process (CIRP) initiated against M/s Alchemist Limited, holding that the insolvency proceedings were vitiated by fraud, collusion and malicious intent, a statement said on Thursday.
The order was pronounced on Wednesday, with the Tribunal exercising its powers under Section 65 of the Insolvency and Bankruptcy Code (IBC), 2016.
The NCLT categorically held that the insolvency framework cannot be misused as a shield to legitimise proceeds of crime or frustrate proceedings under the Prevention of Money Laundering Act (PMLA), 2002.
The ED initiated its probe against M/s Alchemist Limited under the provisions of the PMLA based on FIRs registered by the Kolkata Police and Uttar Pradesh Police.
The investigation revealed that Alchemist Holdings Limited and M/s Alchemist Township India Ltd had collectively raised more than Rs 1,840 crore from the public by promising high returns and allotment of plots, villas and flats. However, neither the promised properties nor returns were delivered, and investors’ money was not refunded.
According to ED, the funds were siphoned off and diverted to other group entities, including M/s Alchemist Limited, in the form of inter-corporate deposits (ICDs).
The ED filed its main prosecution complaint (charge sheet) on March 2, 2021, followed by supplementary complaints on July 19, 2024 and September 11, 2025, before the Special PMLA Court. The agency has also provisionally attached movable and immovable properties worth Rs 492.72 crore through seven separate attachment orders.
During the investigation, the ED found that an application under Section 9 of the IBC had been filed by M/s Sai Tech Medicare Private Limited to initiate CIRP against M/s Alchemist Limited.
Subsequently, a Committee of Creditors (CoC) was constituted, which, according to the ED, was almost entirely dominated by Alchemist Group entities. M/s Technology Parks Limited alone held nearly 97 per cent of the voting rights, while M/s Alchemist Township India Limited and M/s Alchemist Realty Limited held 1.74 per cent and 0.61 per cent voting shares, respectively.
The ED placed detailed material before the Tribunal showing that these dominant CoC members were group entities accused of money laundering and beneficiaries of the proceeds of crime. All of them have been named as accused in the ED’s PMLA complaint.
It argued that the insolvency process was being used as a device to reclaim attached assets and to invoke immunity under Section 32A of the IBC to frustrate criminal proceedings under the PMLA.
The agency also highlighted that an ex-employee of the Alchemist Group, Gaurav Misra, was appointed as the Resolution Professional, raising serious concerns over independence and fairness. Despite specific directions from the Tribunal, the ED was not impleaded in a timely manner, indicating mala fide intent, the agency submitted.
Accepting the ED’s submissions, the NCLT held that the IBC is a beneficial legislation intended for genuine insolvency resolution and not a mechanism to sanitise tainted transactions or launder proceeds of crime.
The Tribunal ruled that Section 32A of the IBC cannot be invoked to extinguish criminal liability or to derail proceedings under the PMLA. It further observed that a CIRP dominated by accused group entities fundamentally erodes the independence and commercial wisdom of the CoC.
Allowing such proceedings to continue, the NCLT said, would result in legitimisation of proceeds of crime, dilution of PMLA attachments and abuse of insolvency-related immunity.
The Tribunal concluded that the insolvency process had been initiated with fraudulent and malicious intent, squarely attracting the provisions of Section 65 of the IBC.
While reiterating that the IBC and the PMLA operate in distinct fields and may proceed in parallel in appropriate cases, the NCLT held that the doctrine of parallel operation cannot be stretched to permit abuse of one statute to defeat the object and purpose of another.
Accordingly, the Tribunal recalled the CIRP, lifted the moratorium imposed under Section 14 of the IBC, nullified the appointment of the Resolution Professional and set aside all actions taken pursuant to his appointment.
Taking note of the gross abuse of the legal process, the NCLT imposed a penalty of Rs 5 lakh on the operational creditor, M/s Sai Tech Medicare Private Limited.
The order, the Tribunal noted, reaffirms the settled legal position that insolvency proceedings cannot be misused to defeat criminal law, confiscation of proceeds of crime or restitution to investors under the PMLA.(Agwency)
FOLLOW NOW
