The Directorate of Enforcement (ED) has arrested Dinesh Gupta, former Managing Director of Best Foods Limited, in connection with an alleged ₹1,740 crore loan fraud case. Gupta was taken into custody on August 8, 2025, following a probe based on a Central Bureau of Investigation (CBI) FIR registered in 2020.
On August 13, after six days of ED custody for interrogation, a competent court ordered Gupta’s judicial remand until August 27. The case involves accusations of large-scale misappropriation of bank loans obtained from a consortium of lenders by Best Foods Limited, one of India’s largest premium Basmati rice processors.
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Nationwide Search Operations Uncover Benami Assets
Between July 15 and 17, 2025, the ED carried out search operations under the Prevention of Money Laundering Act (PMLA), 2002, at five locations in Karnal, Chandigarh, Kaithal, and Ambala. Investigators seized five high-end vehicles believed to be purchased using proceeds of crime.
According to the ED, Gupta allegedly rigged the auction process during the liquidation of Best Foods by facilitating the purchase of its properties through over 75 shell entities registered in the names of his relatives. The agency claims these actions circumvented legal and financial scrutiny, resulting in the concealment of illicit assets. Preliminary findings have identified benami properties worth over ₹200 crore, suspected to have been bought with diverted bank funds.
From Insolvency to Criminal Investigation
The company’s troubles date back to 2018 when insolvency proceedings began after it defaulted on a ₹25 lakh payment to a vendor. The National Company Law Tribunal (NCLT) subsequently ordered the liquidation of Best Foods Limited.
Best Foods, known for its rice and paddy exports, allegedly diverted significant portions of bank loans for purposes unrelated to its stated business operations. The ED continues to track the money trail and identify additional persons involved in the alleged fraud. Further investigation remains in progress.