ED has got an important legal victory in the big money laundering case related to Alchemist Group. National Company Law Tribunal (NCLT), New Delhi, in its order dated 03 February 2026, canceled the ongoing Corporate Insolvency Resolution Process (CIRP) against M/s Alchemist Limited. The tribunal clearly said that this insolvency process was not started with good intentions, but with fraud and collusion.
NCLT also made it clear in its order that the Insolvency and Bankruptcy Code (IBC) cannot be used to launder money related to money laundering. According to the tribunal, no company can escape the ongoing investigation or asset seizure under the Prevention of Money Laundering Act by resorting to insolvency.
Investigation was started on the FIR of Kolkata Police and UP Police.
ED’s investigation was started on the basis of FIR of Kolkata Police and UP Police. Investigation revealed that Alchemist Holdings Limited and Alchemist Township India Limited collected more than Rs 1840 crore from the common people by luring them with plots, villas, flats and high returns, but neither did the investors get any property nor was their money returned.
According to ED, the money raised from investors was diverted to other companies of Alchemist Group. This amount was given to other group companies through Inter Corporate Deposits (ICDs), which also includes M/s Alchemist Limited. In this case, ED has so far filed several prosecution complaints and movable and immovable properties worth about Rs 492.72 crore have been attached.
ED investigation also revealed that an insolvency application was deliberately filed against M/s Alchemist Limited under Section 9, IBC. The Committee of Credit (CoC) formed in this process was also almost completely occupied by the companies of Alchemist Group. A group company had about 97 percent voting rights, which means decisions were being taken by the same people who themselves are accused in this case.
ED also told NCLT that the resolution professional appointed during CIRP. He had previously worked in the Alchemist Group. This raised questions on the fairness of the entire process. Moreover, despite the directions of NCLT, ED was not made a party to the case on time, which the tribunal considered to be in bad faith.
Agreeing with the ED’s arguments, NCLT said that IBC is a relief law and not a means of laundering the money earned from crime. The Tribunal clearly said that the criminal proceedings under PMLA cannot be ended by using Section 32A of the IBC.
NCLT also admitted that the CoC being controlled by the accused companies destroys the credibility of the insolvency process. Had such CIRP been allowed to continue, it would have legitimized the money laundered and weakened the ED’s action.
In its order, NCLT completely canceled CIRP, removed the moratorium imposed under Section 14 of IBC, also quashed the appointment of the resolution professional and all its decisions. Not only this, a fine of Rs 5 lakh was also imposed on Sai Tech Medicare Private Limited for misusing the process of law.
