ED Arrests Ex-Promoter of Richa Industries in ₹236-crore Bank Fraud Case
Court / Authority
Indirect Taxes and Customs (CBIC)
Update / Judgement Date
22 Jun 2026
Source
WCP News Bulletin
Author
Manas Yadav — WCP Legal Desk
Reading Time
2 min read
View Count
2
Background
The Directorate of Enforcement (ED) has arrested Sandeep Gupta, former promoter and suspended Managing Director of Richa Industries Limited, in connection with an alleged ₹236-crore bank fraud. The arrest was made on January 20, 2026, under the Prevention of Money Laundering Act, 2002, following an investigation initiated on the basis of a CBI FIR. The case relates to alleged criminal conspiracy, cheating and criminal misconduct between 2015 and 2018, which, according to the ED, resulted in substantial losses to public sector banks. The agency has claimed that the company recorded fictitious sales and bogus purchases to inflate turnover and misrepresent its financial position.
Alleged diversion during the insolvency process
The ED has alleged that funds were siphoned off through related-party transactions and shell entities, including diversion of money during the Corporate Insolvency Resolution Process (CIRP). Richa Industries entered CIRP in December 2018, and the National Company Law Tribunal ordered its liquidation on June 11, 2025. According to the agency, corporate guarantees exceeding ₹232 crore were issued shortly before the commencement of CIRP to entities holding voting rights in the Committee of Creditors, allegedly enabling obstruction of the resolution process. Gupta was produced before a special court in Gurugram, which granted the ED eight days’ custody. Further investigation is ongoing.
Full Judgement / Attachment
Full Judgement
Frequently asked questions about Indirect Taxes and Customs (CBIC)
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- The Central Board of Indirect Taxes and Customs (CBIC), in the Department of Revenue, Ministry of Finance, administers customs, central excise and the Central GST and IGST. It issues notifications, circulars and instructions that field formations follow.
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- Bills of entry and shipping bills are filed electronically through ICEGATE, the CBIC's customs e-commerce gateway. Most bills of entry are assessed under the Faceless Assessment system.
- How do I appeal against a customs order?
- A first appeal lies to the Commissioner (Customs Appeals) within 60 days, with a pre-deposit of 7.5 per cent of the duty in dispute. A further appeal lies to the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) within three months, with a pre-deposit of 10 per cent.
- Where are CBIC notifications published?
- Notifications and circulars on customs, GST and central excise are published on the CBIC website (cbic.gov.in) and in the Gazette of India, under separate series for tariff and non-tariff notifications.
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