The Enforcement Directorate (ED) has arrested Arvind Kumar, the former Resolution Professional of Richa Industries Limited (RIL). He has been placed in eight-day custody. The arrest is linked to allegations of benefiting from the Proceeds of Crime in a major fraud case involving RIL. Arvind Kumar served as the company’s Resolution Professional from December 2018 to June 2025. Earlier, the ED had arrested RIL’s former promoter and managing director, Sandeep Gupta. The case traces back to a Central Bureau of Investigation (CBI) First Information Report. It alleges losses of ₹236 crore to public sector banks from 2015 to 2018. The ED said that during Kumar’s tenure, large sums were funneled from RIL to people and companies close to him. "Large payments were routed from the corporate debtor’s accounts to these intermediaries, who then transferred significant amounts back to Arvind Kumar’s personal bank accounts," the agency stated. Bank statements show Kumar had unexplained cash deposits exceeding ₹80 lakh. Additionally, he received over ₹1 crore from related parties, who had earlier benefited from RIL payments. The ED accuses him of disguising illegal funds as legitimate under insolvency operations. Kumar is also said to have worked with former RIL promoters to keep control over key projects. He allowed their involvement in decision-making and avoided filing legal actions against suspicious transactions. This included ignoring signs of preferential, undervalued, and fraudulent deals highlighted in audits. The ED said this helped original offenders keep illicit money. Moreover, Kumar forwarded ineligible resolution plans from promoter-controlled entities and allegedly seized crores from parties pretending to sell company assets without permission or proper paperwork. The ED pointed out, "Due to acts of RP (Resolution Professional) in orchestrating a ‘pro-promoter’ conspiracy, it has resulted in a staggering 94% loss (haircut) to public sector banks. After liquidation of RIL, banks have just received ₹40 crore against the admitted claims of Rs.708 crore...the RP’s registration was suspended by the Insolvency and Bankruptcy Board of India for two years on related contraventions."