The National Company Law Tribunal (NCLT), New Delhi, has recalled the Corporate Insolvency Resolution Process (CIRP) initiated against M/s Alchemist Limited, upon holding that the insolvency proceedings were vitiated by fraud, collusion, and malicious intent.
The Tribunal passed the order (on February 3) after the Enforcement Directorate (ED), which is probing money laundering charges involving the Alchemist group in an alleged ₹1,842-crore scandal, intervened in the matter.
In a press statement the federal agency said that 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.
ED’s probe revealed that an application under Section 9 of IBC was filed to initiate CIRP against M/s Alchemist Limited by M/s Sai Tech Medicare Pvt. Ltd. Subsequently, a Committee of Creditors (CoC) was constituted, dominated almost entirely by Alchemist Group entities themselves, with M/s Technology Parks Limited holding approximately 97% voting rights. ED placed before the Tribunal detailed material demonstrating that the dominant CoC members were group entities accused of money laundering and beneficiaries of proceeds of crime including M/s Technology Parks Limited (voting share 97%) M/s Alchemist Township India Limited (voting share 1.74%) and M/s Alchemist Realty Limited (voting share 0.61%).
Source: Economic Times