ED arrests Resolution Professional for Rs 236 crore money laundering in bank fraud case

• The Enforcement Directorate (ED) arrested Arvind Kumar, a former Resolution Professional (RP) for Richa Industries Ltd., on money laundering charges.
• Kumar is accused of misusing the insolvency and bankruptcy framework, leading to significant losses for public sector banks.
• The case involves an alleged bank fraud of Rs 236 crore by Richa Industries and its promoters between 2015 and 2018.
• ED alleges Kumar undertook "personal enrichment" by diverting substantial funds from Richa Industries through layered transactions to his personal accounts and related entities.
• The RP's actions reportedly resulted in a 94% loss to banks, recovering only Rs 40 crore against admitted claims of Rs 708 crore.