The Enforcement Directorate (ED) recently conducted raids at 35 locations linked to the Amtek Group in the Delhi-NCR and Maharashtra regions.
These actions were in response to a significant bank fraud case involving more than ₹20,000 crores across multiple listed companies. These companies were subsequently acquired at a nominal price during NCLT proceedings, resulting in minimal recovery for a consortium of banks.
Financial Impact
According to the ED, the alleged fraud has inflicted a loss of approximately ₹10-15,000 crores on the exchequer.
Scope of the Raids
Under the Prevention of Money Laundering Act (PMLA), the ED raided properties in Gurugram, Noida, Mumbai, and Nagpur, all associated with the Amtek Group, which was led by Arvind Dham, Gautam Malhotra, and others.
Origin of the Investigation
The investigation originated with a First Information Report by the Central Bureau of Investigation (CBI) concerning one of the Amtek Group’s companies, ACIL Limited. The Supreme Court also directed the CBI to investigate the fraud. The ED’s investigation followed the CBI’s FIR and the Supreme Court’s instructions.
Findings of the ED Probe
Diversion of Loan Funds
The ED’s probe revealed that loan funds were diverted to new ventures, real estate, and foreign investments.
Fabricated Financial Data
The investigation also uncovered fabricated sales, capital assets, debtors, and profits to secure more loans and prevent them from becoming non-performing assets (NPAs).
Allegations and Asset Concealment
The ED stated, “It is alleged that shares of listed companies were manipulated. Assets worth thousands of crores have been hidden in the names of shell companies. Some foreign assets have been created, and money is still parked under new names.”
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