Daijiworld Media Network - New Delhi
New Delhi, Aug 12: The Directorate of Enforcement (ED) on Wednesday arrested insolvency professional Jitesh Gupta under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002, in connection with an alleged money laundering case.
Gupta had acted as interim resolution professional/resolution professional (IRP/RP) in the Corporate Insolvency Resolution Process (CIRP) of M/s Homestead Infrastructure Development Pvt. Ltd. and M/s Golden Peacock Residence Pvt. Ltd.
He was produced before the Special Court (PMLA), which remanded him to ED custody for further investigation, the agency said in a press statement.
The ED initiated the probe based on an FIR registered by the Central Bureau of Investigation (CBI) against M/s Best Foods Ltd. under various sections of the Indian Penal Code, 1860, and the Prevention of Corruption Act, 1988.
The investigation revealed that Dinesh Gupta, while in control of M/s Best Foods Ltd. and related entities, allegedly diverted loan funds through dummy and shell companies and laundered the proceeds of crime.
Further investigation found that Jitesh Gupta, in his capacity as IRP/RP, suo motu re-admitted claims that he had previously rejected as spurious and fraudulent. According to the ED, this altered the composition of the Committee of Creditors.
The agency further alleged that Gupta facilitated a Resolution Plan that was submitted as a front for Dinesh Gupta and funded through an entity controlled by him. Gupta also recommended a person connected with Dinesh Gupta as a prospective resolution applicant, the ED said.
The National Company Law Tribunal (NCLT), in its order dated September 9, 2025, recorded adverse findings against Jitesh Gupta.
According to the ED, the Tribunal held that Gupta had acted beyond his authority by relying on fabricated and improperly submitted documents and directed his replacement as Resolution Professional.
The ED investigation also uncovered a banking trail involving unexplained financial transactions received by Gupta from several persons linked to Dinesh Gupta, M/s Best Foods Ltd. and its group entities.
No legitimate consideration for these transactions was found on record, the agency said.
The ED said the evidence collected established that Jitesh Gupta knowingly facilitated the process and activities connected with the proceeds of crime, thereby attracting liability under Section 3 of the PMLA, 2002, which is punishable under Section 4 of the Act.
Further investigation in the case is in progress.