Delhi Police books Experion firms over insolvency fraud

NEW DELHI: In a significant development, the Economic Offences Wing (EOW) of Delhi Police has registered a case against Experion Developers Private Limited and Experion Capital Private Limited, along with others, over allegations of rigging the insolvency process of Dignity Buildcon Private Limited. The case stems from a complaint filed by the Directorate of Enforcement under provisions of the Prevention of Money Laundering Act.

The FIR, filed under Sections 420 and 120B of the IPC, relates to an alleged scheme to manipulate the Corporate Insolvency Resolution Process (CIRP) of DBPL, which owns nearly 27.86 acres of prime land in Gurugram valued at over Rs 630 crore.

According to investigators, the fraud involved a strategic takeover of creditor voting rights. While EDPL had secured a stay on insolvency proceedings from the Delhi High Court, its affiliate ECPL allegedly used this period to acquire significant debt positions at steep discounts. This included purchasing exposure from Standard Chartered Bank and other stakeholders, eventually gaining overwhelming control—reportedly up to 95 per cent—of the Committee of Creditors (CoC).

ED alleged coercion in creditor voting, with decisions influenced under pressure, enabling approval of a Rs 660 crore bid despite higher offers. Investigators flagged fund round-tripping.

The attached Gurugram land and CIRP process remain under legal challenge, with parallel regulatory probes underway.