The Enforcement Directorate (ED) has taken a significant step in its investigation into the alleged bank loan fraud perpetrated by the Amtek Group. The agency has attached assets worth over Rs 5,000 crore belonging to the insolvent group, marking a major development in the case.
Assets Worth Billions Attached
The attached assets include a wide range of properties, including 85 immovable properties valued at Rs 2,674.75 crore spread across 13 states. These properties encompass large commercial properties, farmhouses in Delhi, and vast tracts of land in Maharashtra, Haryana, and Punjab. Additionally, the ED has seized shares worth Rs 2,353.46 crore in various listed and unlisted companies, along with debentures valued at Rs 87.10 crore.
ED, Gurugram has provisionally attached movable and immovable properties valuing Rs. 5,115.31 Croreon 05.09.2024 under the provisions of PMLA, 2002 in the case M/s Amtek Auto Limited, M/s ARG Limited, M/s ACIL limited, M/s Metalyst Forging Limited and M/s Castex Technologies…
— ED (@dir_ed) September 7, 2024
Investigation into Financial Fraud
The ED’s action comes on the heels of the arrest of Amtek Group promoter Arvind Dham in July. The agency initiated its investigation under the Prevention of Money Laundering Act (PMLA) based on a CBI FIR and the Supreme Court’s directive to probe the alleged diversion of bank loans by the group.
Through its investigation, the ED uncovered a complex scheme where the Amtek Group companies manipulated their financial statements to obtain fraudulent loans and create fictitious assets. A network of over 500 shell companies was used to hold high-value properties, ultimately tracing back to the ownership of Arvind Dham.
Impact on Banks and Insolvency
The Amtek Group’s fraudulent activities led to the insolvency of several companies within the group, including Amtek Auto, ARG, ACIL, and Metalyst Forging. This insolvency resulted in significant losses for banks like IDBI and Bank of Maharashtra, with over 80% of their loans being written off.
The ED’s searches in June uncovered the intricate web of companies and assets involved in the alleged fraud. The agency’s continued efforts to recover the proceeds of crime and bring the perpetrators to justice are crucial in addressing the financial damage caused by the Amtek Group’s actions.
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