MUMBAI: The Economic Offences Wing (EOW) of the Mumbai Police has opposed a plea filed by Amit Gupta, former resolution professional and liquidator of Provogue (India) Ltd, before the NCLT seeking protection under Section 233 of the Insolvency and Bankruptcy Code (IBC).In its reply, EOW alleged that Gupta and other accused persons deliberately undervalued Provogue’s Hong Kong subsidiary, Elite Team (HK) Ltd, during the liquidation process and subsequently benefited from its assets.The EOW had last year registered an FIR on a complaint filed by former managing director Nikhil Chaturvedi, who alleged that a few former employees of the company caused him a loss of Rs 90 crore by undervaluing assets, failing to recover dues and manipulating the liquidation process.According to EOW, Elite HK was assigned a nil value in the auction despite owning three properties in Hong Kong.Two of the properties were later sold in 2025 for around Rs 15 crore, while the third property, acquired for around Rs 16 crore, remains in the possession of the accused, police claimed.Sachin Suryavanshi, the investigating officer, also alleged in the reply to NCLT that within 17 days of Provogue’s 2023 auction, the company’s financial statements reflected Elite HK at around Rs 32.27 crore, despite its nil valuation during the auction.The agency further alleged that around Rs 32.71 crore in export receivables was written off after fresh exports worth Rs 44.23 crore were made during the post-CIRP period. It claimed that adequate recovery measures and required regulatory approvals were not obtained.The case stems from a complaint received by EOW in September 2024 alleging fund diversion, suppression of asset values and irregularities in the liquidation process.After a 14-month preliminary enquiry, EOW registered an FIR against Gupta and others in November 2025 under Sections 406, 420, 120-B and 34 of the IPC.EOW cited statements of the company’s statutory auditor and an independent valuer, claiming they corroborated the alleged suppression of Elite HK’s true value.The agency told the NCLT that the material collected indicates prima facie criminal conspiracy, cheating and breach of trust, and therefore Gupta cannot claim “good faith” protection under the IBC. It has sought dismissal of his application.
