This is a part of a probe into the Best Foods money laundering case the ED registered after taking over the same matter from the CBI.

The ED has launched a crackdown at the misuse of insolvency processes over suspicion that the corporate debt framework is being used for money laundering and personal enrichment.

For that, the ED has arrested Jitesh Gupta, Insolvency Professional, who acted as Interim Resolution Professional/Resolution Professional (IRP/RP) in the Corporate Insolvency Resolution Process (CIRP) of M/s Homestead Infrastructure Development Private Limited and M/s Golden Peacock Residence Private Limited, under the PMLA, 2002. 

This is a part of a probe into the Best Foods money laundering case the ED registered after taking over the same matter from the CBI.

Gupta is not alone to have been rounded off for his alleged official misconduct in the capacity of an RP for pecuniary gains. The sleuths had arrested Arvind Kumar, the former Resolution Professional (RP) of Richa Industries Limited (RIL), on February 3, 2026, for somewhat similar offences.

Serving as the RP for RIL from December 2018 to June 2025, Kumar allegedly colluded with former promoters and accepted sham and inflated claims from dummy entities to manipulate the Committee of Creditors (CoC) -- primarily comprising financial creditors like banks and financial institutions. The CoC decides the financial future of the company. In return, Kumar allegedly got funds through a web of transactions from RIL linked associates and firms.

Under the Insolvency and Bankruptcy Code, 2016 (IBC), the RP acts as the central conductor of the Corporate Insolvency Resolution Process (CIRP). Appointed by the National Company Law Tribunal (NCLT), their role is administrative, and managerial, and aimed at keeping the company operating while attempting to resolve its debt. 

Post appointment, the powers of the company’s Board of Directors are suspended and vested in the RP.

In the latest case, the ED probe revealed that Dinesh Gupta, while in control of M/s Best Foods Ltd and related entities, diverted loan funds through dummy and front companies and laundered the proceeds of crime -- an offence under the PMLA.

Investigation further revealed that Jitesh, in his capacity as IRP/RP, suo motu re-admitted claims earlier rejected by him as spurious and fraudulent, altering the composition of the CoC, and facilitated a resolution plan submitted as a front for Dinesh Gupta and funded through an entity controlled by him, the ED said.

Jitesh also recommended a person connected with Dinesh Gupta as a prospective resolution applicant. The NCLT, through an order on September 9, 2025, recorded adverse findings against Jitesh Gupta, holding that he had acted beyond his authority by relying on fabricated and improperly submitted documents, and directed his replacement as RP.

According to the ED, the investigation uncovered a trail of unexplained bank transactions received by Jitesh from various individuals associated with Dinesh Gupta and Best Foods Ltd along with its group entities, for which no legitimate explanation could be established. The evidence gathered proved that Jitesh Gupta knowingly facilitated activities linked to the proceeds of crime.

Officials believe that insolvency proceedings are a huge scam which are going on despite there are several Supreme Court observations also on the role of RPs in under selling of distressed corporate assets. 

Forensic auditors would indulge in similar modus operandi to wreck the banking system for personal enrichment, they observed.

Regulators and financial facilitators indulging in corruption are not new. The CBI had examined the role of Chartered Accounts for the first time in investigating the 2G spectrum scam in 2009.  

Published on August 13, 2026