ED arrests insolvency professional Jitesh Gupta in Best Foods money laundering case
Synopsis
The ED's arrest of insolvency professional Jitesh Gupta exposes a troubling vulnerability in India's insolvency framework: a court-appointed Resolution Professional allegedly manipulated creditor committees and facilitated a fraudulent resolution plan to shield a money laundering accused. With the NCLT having already flagged his conduct in September 2025, this arrest signals that the ED is now pursuing gatekeepers of the insolvency process, not just the principal accused.
Key Takeaways
The ED arrested insolvency professional Jitesh Gupta on 12 August under Section 19 of PMLA, 2002 .
Gupta served as IRP/RP in the CIRP of M/s Homestead Infrastructure Development Pvt.
Ltd. and M/s Golden Peacock Residence Pvt.
He allegedly re-admitted previously rejected fraudulent claims, altering the Committee of Creditors composition.
The NCLT , in its 9 September 2025 order, found him to have acted beyond authority using fabricated documents and ordered his replacement.
ED uncovered unexplained banking transactions between Gupta and persons linked to Dinesh Gupta and Best Foods Ltd.
The case originated from a CBI FIR against Best Foods Ltd. for diverting loan funds through shell companies.
The Directorate of Enforcement (ED) arrested Jitesh Gupta, an insolvency professional, under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002, on Wednesday, 12 August, in connection with a money laundering case linked to M/s Best Foods Ltd. Gupta was produced before the Special Court (PMLA), which remanded him to ED custody for further investigation.
Background of the Case
The ED launched its probe on the basis of an FIR registered by the Central Bureau of Investigation (CBI) against M/s Best Foods Ltd. under provisions of the Indian Penal Code, 1860 and the Prevention of Corruption Act, 1988. Investigators found that Dinesh Gupta, while in control of Best Foods and related entities, diverted loan funds through dummy and shell companies, laundering the proceeds of crime.
What Jitesh Gupta Allegedly Did
Jitesh Gupta had served as Interim Resolution Professional/Resolution Professional (IRP/RP) in the Corporate Insolvency Resolution Process (CIRP) of M/s Homestead Infrastructure Development Pvt. Ltd. and M/s Golden Peacock Residence Pvt. Ltd. According to the ED, he suo motu re-admitted claims he had previously rejected as spurious and fraudulent, thereby altering the composition of the Committee of Creditors.
He also reportedly facilitated a Resolution Plan that was submitted as a front for Dinesh Gupta, funded through an entity under Dinesh Gupta's control. Additionally, Gupta recommended a person connected to Dinesh Gupta as a prospective resolution applicant — a move investigators say was designed to perpetuate the laundering scheme.
NCLT's Adverse Findings
The National Company Law Tribunal (NCLT), in its order dated 9 September 2025, recorded adverse findings against Jitesh Gupta. The Tribunal held that he had acted beyond his authority by relying on fabricated and improperly submitted documents, and directed his replacement as Resolution Professional. This judicial finding has now formed a key pillar of the ED's case.
Financial Trail Uncovered
ED investigators also uncovered a banking trail of unexplained financial transactions received by Gupta from several persons linked to Dinesh Gupta, Best Foods Ltd., and its group entities. No legitimate consideration for these transactions was found on record, according to the agency's statement.
The evidence gathered, the ED said, establishes that Jitesh Gupta knowingly facilitated activities connected with the proceeds of crime, attracting liability under Section 3 of the PMLA, 2002 — punishable under Section 4 of the Act. Further investigation in the matter is ongoing.
Point of View
Not a business promoter — marks a significant escalation in how the ED is approaching financial crime. India's insolvency resolution architecture relies on the integrity of IRP/RPs as neutral arbiters; if that neutrality can be bought, the entire CIRP mechanism becomes a tool for legitimising fraud. The NCLT had already sounded the alarm in September 2025, yet the system did not trigger a criminal referral on its own — the ED had to pursue it independently. That gap in institutional coordination deserves scrutiny. This case could prompt the Insolvency and Bankruptcy Board of India (IBBI) to tighten oversight norms for resolution professionals handling large, contested insolvencies.
NationPress
12 Aug 2026
Frequently Asked Questions
Why was Jitesh Gupta arrested by the ED?
Jitesh Gupta was arrested on 12 August under Section 19 of the PMLA, 2002, for allegedly facilitating money laundering in the Best Foods Ltd. case. As a Resolution Professional, he is accused of re-admitting fraudulent creditor claims, enabling a sham resolution plan, and receiving unexplained payments from persons linked to the principal accused, Dinesh Gupta.
What is the Best Foods Ltd. money laundering case?
The case centres on Dinesh Gupta, who allegedly diverted loan funds from Best Foods Ltd. through shell and dummy companies to launder proceeds of crime. The ED probe was initiated based on a CBI FIR filed under the Indian Penal Code and the Prevention of Corruption Act.
What did the NCLT say about Jitesh Gupta?
The National Company Law Tribunal, in its order dated 9 September 2025, recorded adverse findings against Jitesh Gupta, holding that he acted beyond his authority by relying on fabricated and improperly submitted documents. The Tribunal ordered his replacement as Resolution Professional.
What is Jitesh Gupta's role in the insolvency process?
Jitesh Gupta acted as Interim Resolution Professional and Resolution Professional in the Corporate Insolvency Resolution Process of M/s Homestead Infrastructure Development Pvt. Ltd. and M/s Golden Peacock Residence Pvt. Ltd., both linked to the Best Foods group.
What happens next in the ED investigation?
Jitesh Gupta has been remanded to ED custody by the Special Court (PMLA) for further investigation. The ED has stated that the investigation is ongoing, suggesting additional arrests or asset attachments may follow.
