The Enforcement Directorate has arrested insolvency professional Jitesh Gupta under the Prevention of Money Laundering Act in connection with a money laundering investigation involving Best Foods Ltd, alleging that he facilitated processes connected with proceeds of crime while serving as a resolution professional.
Gupta had acted as interim resolution professional and resolution professional in the Corporate Insolvency Resolution Process of Homestead Infrastructure Development Pvt Ltd and Golden Peacock Residence Pvt Ltd. He was produced before a Special Court under the PMLA, which remanded him to ED custody for further investigation.
Probe Stems From CBI Case Against Best Foods
The ED investigation originated from an FIR registered by the Central Bureau of Investigation against Best Foods Ltd under provisions of the Indian Penal Code and the Prevention of Corruption Act.
According to the investigation, Dinesh Gupta, while controlling Best Foods Ltd and related entities, allegedly diverted loan funds through dummy and shell companies and laundered the proceeds.
The ED case was subsequently registered under the Prevention of Money Laundering Act. Dinesh Gupta had earlier been arrested by the agency in August 2025.
Investigators alleged that Jitesh Gupta, while acting as an IRP/RP, suo motu re-admitted claims that he had previously rejected as spurious and fraudulent. The ED said the action altered the composition of the Committee of Creditors.
ED Alleges Resolution Process Was Manipulated
The agency alleged that Jitesh Gupta facilitated a Resolution Plan submitted as a “front” for Dinesh Gupta and funded through an entity controlled by him.
He also allegedly recommended a person connected with Dinesh Gupta as a prospective resolution applicant.
The National Company Law Tribunal, in an order dated September 9, 2025, recorded adverse findings against Jitesh Gupta. According to the ED, the tribunal held that he had acted beyond his authority by relying on fabricated and improperly submitted documents and directed that he be replaced as resolution professional.
The agency’s investigation also uncovered what it described as a banking trail of unexplained financial transactions received by Jitesh Gupta from several people linked to Dinesh Gupta, Best Foods Ltd and its group entities.
The ED said no legitimate consideration for these transactions was found on record.
ED Says Evidence Links Gupta to Proceeds of Crime
According to the agency, the evidence collected during the investigation established that Jitesh Gupta knowingly facilitated processes and activities connected with the proceeds of crime.
The ED said the alleged conduct attracted liability under Section 3 of the Prevention of Money Laundering Act, which is punishable under Section 4 of the law.
The investigation remains in progress.
