Calcutta High Court Flags Prima Facie Fraud In CIRP Against Alchemist Group, Seeks Reports From CBI, ED And SEBI

The Calcutta High Court recently directed the CBI, Enforcement Directorate (ED), and SEBI, which are already examining the affairs of the Alchemist Group amid allegations of running ponzi-style schemes, to file fresh status reports to examine whether the corporate insolvency process (CIRP) was fraudulently initiated.

The court also asked them to look into the movement of funds abroad, possible round-tripping through foreign entities, and protection of investor assets. It noted a prima facie case of fraud and institutional subversion. About Rs. 32.73 crore has been disbursed to investors so far.

A bench of Justices Uday Kumar and Rajarshi Bharadwaj was hearing petitions by investors alleging non-refund of deposits collected under money circulation schemes. The Alchemist Group is a conglomerate founded by TMC Rajya Sabha MP Kanwar Deep Singh.

The matter is also being overseen by a One-Man Committee headed by Justice (Retd.) S.P. Talukdar. The committee was set up to identify assets and ensure repayment to investors.

The court said it could not remain a silent spectator where investor claims are diluted. It noted that the CIRP was allegedly initiated through fraud. Referring to the NCLT Kolkata's recall order, the court observed:

“We take judicial notice of the Recall Order dated February 3, 2026, passed by the NCLT, which unequivocally observed that the CIRP was 'vitiated by fraud' and 'maliciously initiated.' Under the settled principle that 'Fraud unravels all,' this Court cannot remain a silent spectator to a process that seeks to dilute investor claims while allegedly facilitating the re-entry of promoters through a 'front' entity.”

The case traces back to 2017. Investors had approached the High Court seeking a refund of deposits. Over time, the court brought the process under the supervision of the One-Man Committee. It also passed orders to protect assets and regulate disbursal.

Despite this, insolvency proceedings were initiated before the NCLT in 2019. The High Court had earlier restrained the tribunal from passing final orders in the matter.

Taking note of allegations of fraud, the court has now asked Resolution Professionals and the Committee to file a joint report. The report must explain how the insolvency process was initiated and conducted. The CBI has been asked to probe the alleged role of Technology Parks Ltd in triggering the CIRP and its links with the promoters.

The CBI must also explain how funds worth USD 1000 million were allegedly allowed to be moved abroad. It has been asked to clarify whether any officials were involved in such transactions.

The Enforcement Directorate has been directed to ensure that no assets of the group are moved out of the country. It must attach properties to safeguard investor money. The ED will also examine whether a proposed USD 100 million investment by a foreign resolution applicant is actually round-tripped money routed through Cyprus and Greece.

All agencies, including SEBI, have been asked to file detailed status reports within eight weeks.

The court has also passed directions to preserve assets. It ordered that no properties be transferred or sold. Resolution Professionals have been restrained from dealing with assets. Key properties, including land parcels in Madhya Pradesh and Panchkula, must be handed over to the One-Man Committee. The title deeds are also to be deposited with the committee for safekeeping.

The matter will be heard next on May 12.