New Delhi, Dec 6 (NationPress) The Enforcement Directorate (ED) has executed search operations at eight residential and commercial locations in Gurugram and Faridabad on December 3 and 4, under the Prevention of Money Laundering Act (PMLA), focusing on M/s Richa Industries Ltd (RIL), its promoters -- Sandeep Gupta, Manish Gupta, and Sushil Gupta -- along with related group companies.

The investigation is based on a CBI FIR that cites various sections of the IPC and the Prevention of Corruption Act, alleging a criminal conspiracy, fraud, and misconduct that led to wrongful benefits for the accused and a loss of approximately Rs 236 crore to banks between 2015 and 2018.

The ED claims that the investigations have revealed a coordinated conspiracy by the Gupta family to embezzle assets from RIL and undermine the Corporate Insolvency Resolution Process (CIRP).

The promoters are accused of establishing a shell company -- M/s Saariga Constructions Pvt Ltd (SCPL) -- utilizing a former RIL employee as a front. Through this setup, SCPL allegedly secured voting rights in the Committee of Creditors (CoC), thereby allowing the family to obstruct and manipulate the CIRP in their favor, as mentioned by the agency.

Further investigations found that during the insolvency proceedings, the promoters illegally maintained control over RIL, engaged in agreements, and received payments in violation of legal standards.

The ED has pointed out the actions of Resolution Professional Arvind Kumar, accusing him of colluding with the promoters by neglecting to file avoidance applications or address numerous fraudulent transactions indicated in audit reports.

Evidence suggests that the proceeds of crime were funneled through SCPL, which later presented a resolution plan to reacquire RIL -- a strategy that investigators believe demonstrates a calculated effort to regain control through a proxy.

The promoters -- Sandeep Gupta, Manish Gupta, and Shweta Gupta -- are also accused of submitting fraudulent affidavits during personal insolvency proceedings, hiding assets to evade bank liabilities.

The searches resulted in the recovery of digital devices and incriminating documents, including records of assets held by directors, claims made, audited financial statements, tally data, shell companies linked to the Gupta family, legal documents, fraudulent affidavits, and evidence of fund misappropriation. Several bank accounts belonging to the promoters and related individuals with balances exceeding Rs 40 lakh were also frozen, as per the agency's statement.

Officials seized Rs 8 lakh in cash and four luxury vehicles associated with related and proxy companies utilized by the Gupta family. Ongoing investigations are in progress.