ED Arrests Sadhna Group Chief in ₹168-Cr Money Laundering Case
Rakesh Kumar Gupta faces allegations linked to insolvency proceedings, an income-tax settlement and financial transactions; a court has granted five days of ED custody.
GG News Bureau
New Delhi, 12th Oct: The Enforcement Directorate (ED) has arrested Sadhna Group Chairman and Managing Director Rakesh Kumar Gupta in a money laundering case involving alleged financial irregularities linked to Sadhna Media Private Limited’s insolvency proceedings, the settlement of income-tax dues and transactions involving media companies.
The agency has pegged the alleged proceeds of crime at approximately ₹168 crore. Gupta, 63, was arrested on October 9 at around 10:25 pm from Ishwar Farms in Delhi’s Vasant Kunj and produced before a court early the following morning. The court granted the ED five days of custody against its request for seven days, directing that Gupta be produced again by 4 pm on October 15.
Insolvency Proceedings Under Scrutiny
A central part of the investigation concerns the insolvency proceedings of Sadhna Media Private Limited (SMPL). According to the ED’s allegations, the process was influenced in a manner that enabled income-tax dues of ₹110.10 crore to be settled for just ₹20 lakh.
The agency has alleged that lenders holding a combined 99.41 per cent stake in the company’s Committee of Creditors (CoC) were involved in the process. The CoC plays a key role in decisions concerning a company’s resolution or restructuring during insolvency proceedings.
Investigators are examining the lenders’ roles, their relationships and the circumstances in which the settlement was approved. The alleged reduction in tax liabilities has raised questions about the potential impact on government revenue.
However, the allegations do not amount to a finding of guilt. The investigation must establish the relevant transactions, the roles of the parties involved and whether any unlawful financial benefit was obtained.
Transactions Involving Media Companies
The ED is also examining transactions linked to the resale of Sadhna Media Private Limited and Aryan TV. According to the agency’s allegations, between approximately ₹2.50 crore and ₹2.82 crore was received through a combination of cash, USDT—a cryptocurrency designed to track the US dollar—and hawala channels.
The agency has further alleged that Sadhna Media Private Limited paid lenders a total of ₹4.48 crore, of which ₹2.99 crore went to Sharpline Broadcast, described as Gupta’s company.
Investigators are looking into the purpose of these payments, the movement of funds and the identity of their ultimate beneficiaries.
SEBI Order Also Figure in Investigation
The ED’s remand documents reportedly refer to a May 2025 order by the Securities and Exchange Board of India (SEBI) concerning alleged manipulation of Sadhna Broadcast shares.
According to reports, the order held Gupta responsible in the regulatory matter and referred to joint and several liability of approximately ₹58 crore.
The regulatory proceedings and the current money laundering investigation are separate legal processes. Reports also indicate that the defence argued that the SEBI penalty had been paid and that the order had been challenged. The status and implications of those proceedings must be considered separately from the ED’s current allegations.
Defence Raises Objections; Court Grants Custody
The investigation reportedly stems from a September 29, 2026, FIR registered by Delhi Police’s Economic Offences Wing (EOW). The FIR invoked provisions relating to alleged cheating and criminal breach of trust, among other offences, and Gupta was named as the second accused.
The ED subsequently initiated proceedings under the Prevention of Money Laundering Act (PMLA).
During the custody proceedings, the defence argued that neither the Income Tax Department nor SEBI had filed a complaint against Gupta in this matter. It also referred to a no-dues certificate from the Income Tax Department.
The court reportedly declined to treat the absence of a separate complaint from either department as sufficient grounds to invalidate the ED investigation. The agency cited the suspected movement of funds outside banking channels and the need to examine data from seized electronic devices as reasons for custodial interrogation.
The court allowed five days of custody instead of the seven days sought by the agency.
Gupta’s arrest and remand do not establish guilt. The investigation will need to determine how the insolvency process was handled, whether the alleged tax settlement involved unlawful conduct, where the disputed funds ultimately went and how the financial transactions relate to the alleged offence.
