The Enforcement Directorate arrested Jitesh Gupta in the Best Foods money laundering case

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Best Foods money laundering case

Highlights

The Enforcement Directorate arrested Jitesh Gupta under Section 19 of the PMLA, 2002 in the Best Foods Ltd. money laundering investigation.
The ED investigation revealed that Jitesh Gupta played a role in legitimizing proceeds of crime through fake and dummy entities.
The NCLT, in its order dated 09.09.2025, recorded adverse remarks against Jitesh Gupta and ordered his replacement.

This article was translated from the original. Read the original version by our correspondent here.

Basis of Arrest and Investigation

As stated by the Enforcement Directorate, this action was taken under a money laundering probe arising from an FIR registered by the CBI against M/s Best Foods Ltd. under various sections of the IPC, 1860 and the Prevention of Corruption Act, 1988. The agency states that Jitesh Gupta, who served as IRP/RP in the corporate insolvency resolution process of M/s Homestead Infrastructure Development Pvt. Ltd. and M/s Golden Peacock Residence Pvt. Ltd., was arrested under Section 19 of the PMLA, 2002.

The investigation revealed that Dinesh Gupta allegedly diverted loan amounts and laundered proceeds of crime through dummy and shell entities while controlling M/s Best Foods Ltd. and its associated units. The ED alleges that Jitesh Gupta, using his position as IRP/RP, reinstated previously rejected claims, which were found to be misleading and fake during the investigation, thereby altering the composition of the committee of creditors.

The agency also alleges that he facilitated a resolution plan that was presented as a front for Dinesh Gupta and was financed by an entity under his control. Additionally, he suggested a person linked to Dinesh Gupta as a prospective resolution applicant.

NCLT Findings and Wider Impact

The ED stated that the Hon'ble NCLT, in its order dated 09.09.2025, recorded adverse remarks against Jitesh Gupta. The tribunal found that he allegedly relied on fake and improperly filed documents, acted beyond his jurisdiction, and ordered his replacement.

The investigation also claims to have uncovered several banking transactions in which Jitesh Gupta received funds from Dinesh Gupta, M/s Best Foods Ltd., and individuals associated with its group entities. According to the agency, there was no legitimate consideration found on record for these payments.

The ED states that the evidence collected establishes that Jitesh Gupta knowingly facilitated processes and activities related to the proceeds of crime, making him liable under Section 3 of the PMLA, 2002, which is punishable under Section 4. Further investigation in the case is ongoing.

Our previous report detailed the arrest and ED custody of former Congress state treasurer Ramgopal Agarwal in the alleged Chhattisgarh liquor scam money laundering probe. In that case, the agency cited an investigation into approximately Rs 3,000 crore of criminal proceeds and cash flow from alleged irregularities in the excise system during 2019-2023, as well as alleged fund transfers through individuals linked to the syndicate.

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