NEW DELHI: Indian investigators say a once-prominent textile and infrastructure company was hollowed out from within, its books manipulated and assets diverted as lenders watched their exposure collapse. At the center of the case is a former promoter now in custody, accused of orchestrating a complex web of shell companies and forged transactions in the years leading up to insolvency.
A Company’s Unraveling Before Insolvency
In the months before insolvency proceedings formally began, investigators allege that key assets of Richa Industries Limited were systematically diverted. According to enforcement agencies, Sandeep Gupta, then a promoter and senior executive of the company, played a central role in the movement of funds and…