EOW books four persons in ₹90-crore scam Provogue liquidation case

In 2014, there was a fire in Provogue’s Daman manufacturing unit, and its bank loan account had become a Non-Performing Asset. As per the Insolvency and Bankruptcy Code, 2016, the bank initiated proceedings against the company with the National Company Law Tribunal (NCLT), and Amit Gupta was appointed as the RP

MUMBAI: The Economic Offences Wing (EOW) of the Mumbai police, on the complaint from the former managing director of Provogue India Pvt Ltd, has registered a case against a resolution professional (RP), Provogue’s former director, a few former employees and some clients (debtors). The complainant has alleged that he was cheated of ₹90 crore by the clique.

EOW books four persons in ₹90-crore scam Provogue liquidation case

An RP is a person who conducts a corporate debtor’s insolvency resolution process and manages their operations during the entire process.

“Nikhil Chaturvedi, 55, who registered the complaint, was Provogue’s director and even a guarantor to the bank loans taken by the company,” said a police officer. “He was also the major shareholder till the company went into liquidation. It was purchased by Plutus Investments and Holding Private Limited in the liquidation e-auction.”

In 2014, there was a fire in Provogue’s Daman manufacturing unit, and its bank loan account had become a Non-Performing Asset. As per the Insolvency and Bankruptcy Code, 2016, the bank initiated proceedings against the company with the National Company Law Tribunal (NCLT), and Amit Gupta was appointed as the RP.

After the NCLT process was completed in 2023, Provogue was sold. Chaturvedi continued to track its affairs even after it went into liquidation. He found that from 2018-2019 and 2022-2023, despite ₹32 crore remaining unpaid by some export clients, “suspicious” new export transactions were carried out. The complainant further alleged that Gupta was constantly in touch with former company employee Sameer Khandelwal, while Khandelwal was in touch with former director Rakesh Rawat.

The worth of Provogue India Ltd’s subsidiary, Elite Team Hong Kong, as per its 2017 balance sheet, was ₹54.7 crore and it also owned two immovable properties in Hong Kong. These assets, alleged the complainant, were concealed by the clique, and in 2025, the RP sold one of them to Arpit Khandelwal, owner of Plutus Investments and Holdings Private Limited for “crores of rupees”.

The RP is charged with delaying the auction so that the value of the company fell, which benefited the buyers. He did not even carry out the valuation properly nor kept its documents, said the complaint.

“We have registered a case under Sections 406 (criminal breach of trust), 420 (Cheating), 120 B (Conspiracy) and 34 (Common intention) of the Indian Penal Code against Gupta, Sameer Khandelwal, Rawat, Arpit Khandelwal and Plutus Investments and Holdings Private Limited,” said the police officer.