The Enforcement Directorate (ED) on Thursday carried out searches at 35 locations in Delhi-NCR and Maharashtra, targeting the Amtek Group in connection with a bank fraud case exceeding Rs 20,000 crores. This fraud involved several listed companies that were ultimately acquired in NCLT proceedings at nominal prices, resulting in minimal recovery for a consortium of banks.
The ED’s Zonal office in Gurugram led these raids across Delhi, Gurugram, Noida, Mumbai, and Nagpur under the Prevention of Money Laundering Act (PMLA). The investigation focuses on key figures in the Amtek Group, including Arvind Dham and Gautam Malhotra.
The ED reported that this alleged fraud caused a significant loss to the exchequer, estimated between Rs 10,000 and 15,000 crores. The probe began following a Central Bureau of Investigation (CBI) FIR against one of the group’s entities, ACIL Limited, and was directed by the Supreme Court to investigate the fraud comprehensively.
The investigation revealed that loan funds were misappropriated for investments in real estate, foreign ventures, and new business initiatives. Additionally, the agency discovered that the group inflated sales, capital assets, debtors, and profits to secure more loans and avoid being classified as non-performing assets (NPAs).
The ED also noted that shares of listed companies were manipulated, with assets worth thousands of crores being hidden in shell companies. Some foreign assets were created, and funds are still concealed under new identities.
