ED arrests chairman of media broadcast company in insolvency-linked case

New Delhi, The Enforcement Directorate has arrested the chairman of a Delhi-based media and broadcast company in a money laundering case linked to alleged irregularities in the Insolvency and Bankruptcy Code processes, officials said on Saturday.ED arrests chairman of media broadcast company in insolvency-linked caseRakesh Kumar Gupta, Chairman of the Sadhna Group, was taken into custody on Friday around 10:25 pm in Delhi under the provisions of the Prevention of Money Laundering Act .The 63-year-old was produced by the central agency at the residential camp office of Additional Sessions Judge Saurabh Pratap Singh Laler in Ghaziabad around 2 am on Saturday.The court sent him to five days ED custody. The agency has sought his remand for 7 days.The money laundering case against Gupta and others stems from a September FIR filed by the Economic Offences Wing of the Delhi Police.It was alleged in the police complaint that Gupta engineered the insolvency of Sadhna Media Pvt. Ltd. through related creditors holding 99.41 per cent of the Committee of Creditors so that Income Tax dues of ₹110.10 crore were settled for ₹20 lakh.The other charges against the businessman include receipt of over ₹2 crore in cash through crypto currency/hawala on the resale of SMPL/Aryan TV. He allegedly led SMPL to pay ₹4.48 crore to connected creditors, including ₹2.99 crore to his own company named Sharpline Broadcast.As per the police complaint furnished by the ED to the court in its remand papers, SEBI issued an order in May 2025 calling Gupta the "mastermind" of the "manipulation" of shares of Sadhna Broadcast "jointly and severally liable" for about ₹58 crore.The ED told the court that the alleged proceeds of crime in this case stands at ₹168 crore.The defence counsel argued before the court that neither the SEBI nor the Income Tax Department made a complaint against Gupta and that he even obtained a no dues certificate from the tax department. The counsel added that the SEBI imposed a penalty against him which was paid.The court rejected these arguments, saying the action taken by the ED cannot be said to be illegal "merely because there is no complaint by the SEBI or the I-T department.""The order of SEBI though stated to be under challenge indicates that the complaint has some basis and it is not that the case has been made with nothing there to be investigated.""It was also argued that the NCLT order passed in 2024 has not been challenged, however, the same cannot be the basis to stop the ED from investigating the allegations as alleged, where there is loss to the exchequer of over ₹100 crore," the court said in its order.It added that the investigation in such a matter was "necessary" and the arrest was found to be in accordance with law.The court said the money trail runs "outside" banking channels and the seized device data has not yet been put to the accused and these tasks cannot be completed in judicial custody.This article was generated from an automated news agency feed without modifications to text.