New Delhi, Feb 5 (.) The National Company Law Tribunal (NCLT) in New Delhi has recalled the Corporate Insolvency Resolution Process (CIRP) initiated against Alchemist Limited, ruling that the proceedings were vitiated by fraud, collusion, and malicious intent.
The Enforcement Directorate (ED) stated that its efforts led to this significant judicial outcome.
An official said, “The NCLT, exercising its powers under Section 65 of the Insolvency and Bankruptcy Code, 2016 (IBC), has categorically held that the insolvency framework cannot be misused as a shield to legitimize proceeds of crime or frustrate proceedings under the Prevention of Money Laundering Act.”
The ED initiated its PMLA investigation against Alchemist Limited based on FIRs registered by the Kolkata Police and UP Police.
The investigation revealed that Alchemist Holdings Limited and Alchemist Township India Ltd had collected over ₹1,840 crore from the public by promising high returns or plots/villas/flats, but neither the promised assets nor refunds were provided to investors. The funds were diverted to other group companies, including Alchemist Ltd, in the form of Inter-Corporate Deposits (ICDs).
The ED has filed a chargesheet against Alchemist Limited and others in 2021, along with supplementary chargesheets in 2024 and 2025 before the Special Court (PMLA). It has also provisionally attached movable and immovable properties worth ₹492.72 crore through seven separate orders.
The ED’s investigation found that an application under Section 9 of the IBC to initiate CIRP against Alchemist Limited was filed by Sai Tech Medicare Pvt. Ltd. The subsequent Committee of Creditors (CoC) was almost entirely dominated by Alchemist Group entities, with Technology Parks Limited holding approximately 97% of the voting rights. The ED presented material to the Tribunal demonstrating that:
a) The dominant CoC members were group entities accused of money laundering and beneficiaries of proceeds of crime, including Technology Parks Limited (97% voting share), Alchemist Township India Limited (1.74%), and Alchemist Realty Limited (0.61%). These companies are recipients of Proceeds of Crime and have been named as accused in the ED’s complaint.
b) The insolvency process was being used as a device to reclaim attached assets and invoke immunity under Section 32A of the IBC.
c) An ex-employee of the Alchemist Group, Gaurav Misra, was appointed as Resolution Professional, raising serious concerns about independence and fairness.
d) Despite specific directions from the NCLT, the ED was deliberately not impleaded in a timely manner, indicating mala fide intent.
Key Findings of the NCLT:
Accepting the ED’s submissions, the NCLT held that:
• The IBC is a beneficial legislation meant for genuine insolvency resolution, not a mechanism to sanitize tainted transactions or launder proceeds of crime.
• Section 32A of the IBC cannot be invoked to extinguish criminal liability or frustrate PMLA proceedings.
• A CIRP dominated by accused group entities fundamentally erodes the independence and commercial wisdom of the CoC.
• Permitting such a CIRP to continue would result in the legitimization of proceeds of crime, dilution of PMLA attachments, and abuse of insolvency immunity.
• The insolvency process in this case was initiated and conducted with fraudulent and malicious intent, squarely attracting Section 65 of the IBC.
• While the IBC and PMLA operate in distinct fields and may proceed in parallel, this doctrine cannot be stretched to permit abuse of one statute to defeat the object and purpose of another.
The Tribunal recalled the CIRP, lifted the moratorium declared under Section 14 of the IBC, and nullified the appointment of the Resolution Professional and all subsequent actions taken. Citing a gross abuse of the legal process, the Court also imposed a penalty of ₹5 lakh on the Operational Creditor, Sai Tech Medicare Private Limited.
The NCLT’s order reaffirms the settled legal position that PMLA and insolvency proceedings operate in distinct domains, and the insolvency framework cannot be misused to defeat criminal law, confiscation, or investor restitution.
. ATK SAS .