The National Company Law Tribunal (NCLT) has recalled the Corporate Insolvency Resolution Process (CIRP) initiated in the matter of Alchemist Limited, holding that it was vitiated by fraud, collusion, and malicious intent as found allegedly by the Enforcement Directorate.
The NCLT, exercising its powers under Section 65 of the Insolvency and Bankruptcy Code (IBC), has held that the insolvency framework cannot be misused as a shield to legitimise Proceeds of Crime (PoC) or frustrate proceedings under the Prevention of Money Laundering Act (PMLA).
According to the agency, the ED initiated investigation against Alchemist Limited under PMLA based on the First Information Reports registered by the police in West Bengal and Uttar Pradesh. It…