ED arrests insolvency professional in Best Foods money laundering case

The Enforcement Directorate (ED) has arrested insolvency professional Jitesh Gupta in connection with its money laundering probe arising from the Best Foods case, alleging that he facilitated the admission of fraudulent claims and a resolution plan linked to the alleged diversion of loan funds.

Gupta, who had acted as Interim Resolution Professional/Resolution Professional (IRP/RP) for Homestead Infrastructure Development Pvt Ltd and Golden Peacock Residence Pvt Ltd, was arrested on August 12 under the Prevention of Money Laundering Act (PMLA). He was produced before a special PMLA court, which remanded him to ED custody for further investigation.

The ED probe stems from an FIR registered by the CBI against Best Foods Ltd under various provisions of the IPC and the Prevention of Corruption Act. According to the agency, Dinesh Gupta, who was in control of Best Foods and related entities, diverted loan funds through dummy and shell entities and laundered the proceeds of crime.

The agency alleged that Jitesh Gupta, while acting as IRP/RP, “suo motu” re-admitted claims that he had earlier rejected as spurious and fraudulent. This, according to the ED, altered the composition of the Committee of Creditors and facilitated a resolution plan allegedly submitted as a front for Dinesh Gupta and funded through an entity controlled by him.

The ED also alleged that Gupta recommended a person connected with Dinesh Gupta as a prospective resolution applicant.

The National Company Law Tribunal (NCLT), in an order dated September 9, 2025, had recorded adverse findings against Gupta, holding that he had acted beyond his authority by relying on fabricated and improperly submitted documents. The tribunal had also directed his replacement as Resolution Professional, the ED said.

The agency further claimed to have traced unexplained financial transactions received by Gupta from several persons connected with Dinesh Gupta, Best Foods and its group entities. It said no legitimate consideration for these transactions had been found on record.

The evidence collected so far establishes, according to the ED, that Gupta knowingly facilitated activities connected with the proceeds of crime, making him liable under Section 3 of the PMLA, which is punishable under Section 4 of the Act. Further investigation is underway.

CIRP background

Best Foods Ltd entered the corporate insolvency resolution process (CIRP) on February 2, 2018, after the NCLT Chandigarh Bench admitted the insolvency petition against the company. Atul Kumar Kansal was initially appointed as the Interim Resolution Professional, and was subsequently replaced by Vikram Bajaj as the Resolution Professional on April 17, 2018.

The resolution process initially attracted several expressions of interest after the Resolution Professional invited bids through newspaper advertisements in May and August 2018. However, only Maritime Trade Corporation (MTC) eventually submitted a resolution plan, on October 4, 2018. The Committee of Creditors examined the plan later that month but found significant gaps and ambiguities and decided not to take it forward.

MTC subsequently approached the NCLT, following which the tribunal directed the Resolution Professional in October 2019 to convene a meeting of the CoC and place MTC’s revised resolution plan before it for consideration and voting. The revised plan was discussed at CoC meetings held on November 6 and 8, 2019. State Bank of India, which held the largest voting share of 53.787%, initially abstained from voting on the proposal.

SBI eventually voted in favour of MTC’s revised plan on February 7, 2020. However, the revival effort collapsed when MTC withdrew its resolution plan on March 19, 2020. With no resolution plan approved within the permitted CIRP period, the Resolution Professional moved the NCLT for liquidation of Best Foods under Section 33(1)(a) of the Insolvency and Bankruptcy Code.

The NCLT subsequently ordered liquidation of Best Foods and appointed Vikram Bajaj as the liquidator.

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