New Delhi, February 5: The Enforcement Directorate (ED) has achieved a significant victory. The National Company Law Tribunal (NCLT) in New Delhi has completely revoked the ongoing Corporate Insolvency Resolution Process (CIRP) against Alchemist Limited, as per an order dated February 3, 2026.
The tribunal found that the process was tainted by fraud, collusion, and malicious intent, primarily aimed at laundering criminal proceeds and obstructing the ED’s investigation under the Prevention of Money Laundering Act (PMLA), 2002.
Exercising its powers under Section 65 of the Insolvency and Bankruptcy Code (IBC), 2016, the NCLT clarified that the bankruptcy framework cannot be misused as a shield to legitimize criminal proceeds or to thwart PMLA proceedings. The tribunal annulled the CIRP, lifted the moratorium imposed under Section 14 of the IBC, and declared the appointment of the resolution professional and all actions taken by them as null and void. Additionally, a fine of ₹500,000 was imposed on operational creditor Sai Tech Medicare Private Limited for gross misuse of the process.
The ED’s investigation is based on the First Information Reports (FIRs) filed by the Kolkata Police and Uttar Pradesh Police. The investigation revealed that Alchemist Holdings Limited and Alchemist Township India Limited raised over ₹1,840 crores by enticing investors with promises of high returns, plots, villas, or flats, but failed to deliver either properties or refunds.
These funds were diverted as Inter-Corporate Deposits (ICDs) to other companies within the Alchemist Group. The ED filed a prosecution complaint on March 2, 2021, followed by supplementary complaints on July 19, 2024, and September 11, 2025. The agency has attached assets worth ₹492.72 crores through seven provisional attachment orders.
The CIRP was initiated by an application from Sai Tech Medicare under Section 9 of the IBC. Companies within the Alchemist Group dominated the Committee of Creditors (CoC), with Technology Parks Limited holding 97 percent of the voting shares. The ED provided evidence to the tribunal that key members of the CoC were accused under the PMLA and were beneficiaries of the criminal proceeds. The process was being misused to reclaim attached assets and to seek exemptions under Section 32A of the IBC.
The appointment of former employee Gaurav Mishra as the resolution professional raised questions about fairness, while there was deliberate delay in making the ED a party to the proceedings. The NCLT concluded that the IBC is a beneficial law meant for genuine insolvency resolution, not for cleansing fraud or legitimizing criminal proceeds.
My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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