Thu Feb 05 23:30:41 UTC 2026: # Resolution Professional Arrested in Richa Industries Limited Fraud Case

The Story:
The Enforcement Directorate (ED) has arrested Arvind Kumar, the former Resolution Professional (RP) of Richa Industries Limited (RIL), and placed him in custody for eight days. This action stems from allegations that Kumar was a beneficiary of Proceeds of Crime (PoC) related to losses suffered by public sector banks. The investigation is based on a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI) concerning losses of ₹236 crore from 2015 to 2018.

The ED alleges that Kumar, during his tenure as RP from December 2018 to June 2025, diverted substantial funds from RIL to entities and individuals closely linked to him. Large payments were routed through intermediaries before being transferred back to Kumar’s personal accounts. He is accused of colluding with the former promoters of RIL and enabling a significant loss to public sector banks after liquidation.

Key Points:

  • The Enforcement Directorate (ED) arrested Arvind Kumar, the former Resolution Professional (RP) of Richa Industries Limited (RIL).
  • Kumar is accused of benefiting from Proceeds of Crime (PoC) related to losses suffered by public sector banks.
  • The Central Bureau of Investigation (CBI) initially filed a First Information Report (FIR) alleging losses of ₹236 crore from 2015 to 2018.
  • Bank records reportedly show unexplained cash deposits exceeding ₹80 lakh in Kumar’s accounts, along with credits of over ₹1 crore from related parties.
  • Kumar allegedly colluded with former RIL promoters, enabling them to retain operational control and benefit from illicit proceeds.
  • The actions of the RP resulted in a 94% loss for public sector banks, with banks receiving only ₹40 crore against admitted claims of ₹708 crore.
  • The Insolvency and Bankruptcy Board of India suspended the RP’s registration for two years.

Key Takeaways:

  • The arrest highlights the ongoing efforts to combat financial fraud and corruption within the insolvency resolution process.
  • It underscores the potential for Resolution Professionals to abuse their positions for personal gain, leading to significant losses for creditors, particularly public sector banks.
  • The case emphasizes the importance of stringent oversight and enforcement mechanisms within the Insolvency and Bankruptcy Code (IBC) framework to prevent such abuses.
  • The substantial loss suffered by public sector banks raises concerns about the efficacy of current regulatory and monitoring processes.
  • The involvement of multiple agencies (ED, CBI, Insolvency and Bankruptcy Board of India) indicates a comprehensive approach to investigating and prosecuting financial crimes.

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