The Regulatory Sword: Insolvency Process Recalled
The National Company Law Tribunal (NCLT) in New Delhi has formally recalled the Corporate Insolvency Resolution Process (CIRP) initiated against Alchemist Limited. This significant judicial action, dated February 3, 2026, follows decisive intervention by the Enforcement Directorate (ED). The Tribunal’s order unequivocally states that the insolvency proceedings were vitiated by fraud, collusion, and malicious intent, thereby preventing the misuse of the Insolvency and Bankruptcy Code (IBC) as a shield for financial misconduct.
The ED’s investigation revealed a deliberate strategy to exploit the IBC framework. An application to initiate CIRP against Alchemist Limited was…