Banks Looted Under Cover Of Law? ED Levels Serious Allegations In Experion Deal. Why No Arrests Till Date?

In an era where cyber fraudsters siphon off fortunes from unsuspecting individuals—totaling a staggering ₹23,000 crore in losses across India in 2024 alone—a darker, more insidious threat looms in the boardrooms of corporate India. While everyday victims lose ₹10,000 here or ₹500 there to phishing scams and fake investment lures, a Zee News investigation reveals how powerful real estate conglomerates may be weaponizing the very laws meant to protect the financial system. At the heart of this controversy is Gurugram-based Experion Developers, accused by the Enforcement Directorate (ED) of orchestrating a sophisticated scheme to “loot” public sector banks under the guise of India’s Insolvency and Bankruptcy Code (IBC). The allegations? Exploiting procedural loopholes to acquire prime assets at fire-sale prices, concealing critical attachments, and manipulating creditor committees to engineer massive haircuts on debts—potentially costing lenders hundreds of crores.

This isn’t just a isolated heist; it’s a symptom of systemic vulnerabilities in the IBC framework, introduced in 2016 to streamline corporate rescues and maximize creditor recoveries. Yet, as the ED’s probe unfolds, questions swirl: Are insolvency tribunals like the National Company Law Tribunal (NCLT) unwittingly enabling “powerful corporate players” to game the system? With global heavyweights like Standard Chartered Bank and Blackstone entangled, the case could reshape how distressed assets are handled in India’s booming real estate sector, valued at over $200 billion. As ordinary Indians grapple with digital theft, this corporate saga underscores a chilling parallel: fraud scales up when unchecked power meets legal ambiguity.

The Rise of Experion: From Singapore-Backed Visionary to Scrutiny’s Spotlight

To understand the depth of these allegations, one must first trace Experion Developers’ meteoric trajectory. Founded in 2006 as a wholly-owned subsidiary of Experion Holding Pte. Limited—Singapore’s real estate arm of the AT Holdings Group—Experion entered India with foreign direct investment (FDI) backing, positioning itself as a purveyor of “positive experiences” in urban living. Headquartered in Gurugram’s bustling Vatika First India Place, the firm has delivered 10 landmark projects spanning 9.42 million square feet across Haryana, Uttar Pradesh, Punjab, and beyond, including high-end condominiums like Windchants and The Heartsong in Gurugram, and commercial spaces in Noida and Lucknow.

Under CEO Routhu Nagaraju, Experion has cultivated an image of innovation and sustainability, with recent announcements of a ₹2,000 crore investment in a luxury 540-apartment project, “The Trillion,” in Sector 48, Gurugram. Certified as a “Great Place to Work,” the company boasts a portfolio blending residential elegance with green spaces, strategically located near Cyber City and IGI Airport for seamless connectivity. Yet, this polished facade now faces cracks. Experion’s aggressive expansion into distressed assets—via its non-banking financial arm, Experion Capital—has drawn the ED’s ire, transforming the developer from a “transforming cityscapes” pioneer into a symbol of alleged regulatory arbitrage.

The Spark: Dignity Buildcon’s Debt Spiral and Insolvency Trigger

The scandal’s origins lie in the 2006-incorporated Dignity Buildcon Private Limited, a Delhi-based construction firm (CIN: U45201DL2006PTC147034) that borrowed heavily to fuel Gurugram’s real estate boom. In the mid-2010s, amid a land acquisition frenzy on Golf Course Extension Road, Dignity secured over ₹92 crore in loans from a consortium of six lenders, including Standard Chartered Bank (with a whopping ₹494 crore exposure) and three Blackstone-linked real estate funds holding 10.16% of the debt pie. These funds were earmarked for developing a 9.32-acre parcel in Sector 62, Gurugram—a prime plot valued at around ₹332 crore, ripe for high-rise commercial or residential towers.

By 2018, defaults mounted, triggering creditor actions under the SARFAESI Act. Sudhir Power Projects Ltd. filed under Section 9 of the IBC, leading to Corporate Insolvency Resolution Process (CIRP) admission by the NCLT’s New Delhi Bench on April 24, 2019. CARE Ratings downgraded Dignity’s facilities, flagging insolvency proceedings. What followed was no ordinary bankruptcy; it was a masterclass in alleged opportunism. As Chandra Prakash was appointed Resolution Professional (RP), the stage was set for external players to swoop in—not as rescuers, but as calculated acquirers.

The Alleged Masterstroke: Debt Discounts, CoC Capture, and Hidden Attachments

Enter Experion Capital (ECPL), Experion Developers’ subsidiary, which didn’t bid for the ailing company outright. Instead, it allegedly pursued a shadow strategy: snapping up distressed debts at steep discounts to seize control of the Committee of Creditors (CoC). Standard Chartered offloaded its ₹494 crore claim for a “huge discount,” while Blackstone’s loans—collectively over ₹100 crore—were transferred for less than half their book value, enabling a 70.17% “haircut” on admitted claims.

This maneuver granted ECPL 60% voting rights in the CoC, the pivotal body under Section 21 of the IBC that approves resolution plans. But the plot thickened with Alchemist Asset Reconstruction Company (ARC), holding 35% voting share. Promoted by corporate lawyer Alok Dhir—whose firm, Dhir & Dhir Associates, has a checkered history of loan scam entanglements—Alchemist was allegedly “pressured” to align with Experion’s plan. Dhir, no stranger to controversy (including a 2021 Rajasthan loan fraud case involving ex-SBI Chairman Pratip Chaudhuri, where courts stayed his arrest), positioned Alchemist as both creditor and rival bidder, creating a blatant conflict.

The coup de grâce? Concealment. The 9.32-acre land—central to the ₹332 crore asset pool—had been attached by the ED in 2019 under the Prevention of Money Laundering Act (PMLA) during a probe into Religare Finvest’s irregularities. This attachment, barring any transfer, was allegedly buried from NCLT disclosures. ECPL invested ₹223.92 crore to clinch 60% CoC sway and sway the 35% bloc, pocketing ₹334.08 crore post-approval—a net windfall amid the haircut. NCLT greenlit the plan in May 2023, but the ED now seeks its annulment, branding it a “glaring misuse of Section 30(5) of the IBC.”

Experion vehemently denies wrongdoing, insisting all steps were “lawful and transparent.” Yet, the ED’s application paints a picture of premeditated collusion, with 52 CoC meetings dragging over three years without resolution until Experion’s bid triumphed—allegedly at the expense of fair value maximization.

The Cast of Characters: Global Giants and Shadowy Enablers

No tale of corporate intrigue is complete without its ensemble. Standard Chartered Bank, a veteran in Indian real estate debt with $2.02 trillion in global credit exposure as of March 2025, led the lending syndicate. The UK-based lender, pushing hybrid work models and campus expansions with DLF, has poured billions into India’s property sector but now faces scrutiny for offloading debts too cheaply.

Blackstone, the $1 trillion U.S. behemoth, enters via its BREP Asia funds, which snapped up 10.16% of Dignity’s debt. With a voracious appetite for Indian assets—$2.2 billion in H1 FY26 real estate bets alone, including Kolkata’s South City Mall for $377 million—the firm doubled its India AUM to $50 billion by 2025, eyeing renewables platforms amid a 15% PE dip. Critics question if such discounted sales were arm’s-length or facilitated insider gains.

Then there’s Alok Dhir, the linchpin. As Alchemist ARC’s promoter—RBI’s first licensed ARC under SARFAESI in 2006—Dhir’s empire has weathered storms, from 2021’s SBI scam bailouts to NCLAT battles over Dignity itself. Alchemist, backed by DMI Finance, eyed NCLT acquisitions in 2018, but its dual role as creditor-bidder in Dignity reeks of self-dealing.

ED’s Relentless Pursuit: From Attachment to Annulment Bid

The ED, India’s financial crime watchdog, stumbled upon this during its Religare probe, attaching the land in 2019. By November 2025, it escalated, filing before NCLT to void the May 2023 order, arguing the plan violated IBC’s creditor protection ethos. “ECPL reaped the benefit of the 70.17% haircut while controlling 95% of CoC votes,” the agency contends, urging interim stays on asset transfers. The Insolvency and Bankruptcy Board of India (IBBI) is now probing violations, signaling regulatory teeth.

Parallel probes, like a December 2025 chargesheet against a Gurugram firm for ₹222 crore PMAY fraud, highlight ED’s Gurugram focus.

Demystifying the IBC: A Double-Edged Sword for Creditors

Enacted in 2016, the IBC revolutionized India’s creaky insolvency regime, resolving 1,522 real estate cases by March 2025 with ₹68,541 crore recoveries at 44.7% of claims—far better than pre-IBC eras. At its core is the CoC: a financial creditor conclave under Section 21, chaired by the RP, wielding 66% voting power to approve plans within 180-330 days. It supplants debtor management, ensuring “commercial wisdom” prioritizes value maximization.

Yet, flaws abound. Section 30(5) allows CoC members to bid, inviting conflicts—as in Dignity, where Alchemist’s dual hat blocked rivals. Avoidance provisions (Sections 43-51) target undervalued deals, but enforcement lags. The ED’s case exposes how debt assignments at discounts can cascade into CoC dominance, undermining the Code’s moratorium and transparency mandates. As NCLAT rulings affirm, CoC decisions are sacrosanct unless fraud is proven— a high bar Experion may exploit.

Ripples Across the Sector: Echoes of Wider IBC Predation

This isn’t anomalous. In 2024-25, bank fraud losses ballooned to ₹36,014 crore despite fewer cases, with IBC-linked scams proliferating. DHFL’s ₹34,615 crore siphoning, Jet Airways’ ₹5,716 crore diversion, and RCOM’s lender betrayals mirror Experion’s playbook. Cyber frauds tripled to ₹21,367 crore in H1 FY25, but corporate variants—like digital arrest scams from Myanmar—pale against IBC’s scale. HDFC and Airtel Payments Bank topped 2024-25 fraud tallies at ₹101.82 crore losses, underscoring a fractured ecosystem.

Real estate, with 204 resolved CIRPs yielding 111.6% of fair value, remains a hotspot—yet 70% haircuts in cases like Dignity erode public bank capital. Experts like Anjali Jain warn of “collusion veils” needing evidentiary piercing, urging Section 30(5) reforms.

The Road Ahead: NCLT’s Verdict and Reform Imperative

All eyes on NCLT’s impending ruling, which could void the deal and expand probes to enablers. IBBI’s actions may tighten CoC disclosures, while ED’s PMLA net widens. Experion’s fate hangs in balance, but the real winner? Stricter oversight.

In conclusion, this saga isn’t mere opportunism; it’s a clarion call for IBC evolution. As India eyes $1 trillion in real estate by 2030, fortifying creditor safeguards against elite exploitation is paramount. The law’s intent—to revive, not ravage—must prevail, lest “positive vibes” mask predatory intent.