NEW DELHI, Feb 05, 2026 – In a landmark judicial outcome, the National Company Law Tribunal (NCLT), New Delhi, has recalled the Corporate Insolvency Resolution Process (CIRP) initiated against M/s Alchemist Limited, ruling that the proceedings were “vitiated by fraud, collusion, and malicious intent.”
This significant order, dated February 3, 2026, follows a rigorous intervention by the Directorate of Enforcement (ED), which demonstrated that the insolvency framework was being exploited as a shield to legitimize proceeds of crime and evade action 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 reaffirmed that the IBC is intended for genuine financial resolution and cannot be used to sanitize tainted transactions or frustrate criminal proceedings.
The ED’s investigation into the Alchemist Group revealed a massive fraud where Alchemist Holdings Limited and M/s Alchemist Township India Ltd allegedly collected over Rs. 1840 Crore from the public under the false promise of high returns and real estate allotments.
These funds were never returned or invested as promised; instead, they were diverted to other group entities, including Alchemist Limited, through Inter-Corporate Deposits (ICDs).
Consequently, the ED filed multiple prosecution complaints and provisionally attached assets worth Rs. 492.72 Crore. The agency uncovered that the insolvency process was a calculated “device” to reclaim these attached assets by invoking immunity under Section 32A of the IBC.
The tribunal’s decision was heavily influenced by evidence showing that the Committee of Creditors (CoC) was almost entirely dominated by Alchemist Group entities themselves—specifically M/s Technology Parks Limited, which held a 97% voting share.
These entities were already arrayed as accused in the ED’s money laundering case. Furthermore, the appointment of an ex-employee, Gaurav Misra, as the Resolution Professional raised serious red flags regarding independence and fairness.
The NCLT noted that the ED was deliberately not impleaded in a timely manner, indicating mala fide intent.As a result of these findings, the NCLT has not only recalled the CIRP and lifted the moratorium but also nullified the appointment and actions of the Resolution Professional.
Highlighting the “gross abuse of the process of law,” the Court imposed a penalty of Rs. 5 Lakh on the Operational Creditor, Sai Tech Medicare Private Limited. This ruling sets a critical legal precedent, reinforcing that while the IBC and PMLA operate in distinct fields, the doctrine of parallel operation cannot be stretched to permit the abuse of insolvency laws to defeat the core objectives of criminal justice, asset confiscation, or investor restitution.
