📷 Image Credits: The Times of India
The Enforcement Directorate (ED) conducted raids at 35 locations in Delhi-NCR, Mumbai, and Nagpur linked to the Amtek Group in connection with an over Rs 20,000 crore bank fraud case. The alleged fraud, which falls under the Prevention of Money Laundering Act (PMLA), has caused a loss of approximately Rs 10,000-15,000 crores to the exchequer. The raids targeted business and residential premises associated with the Amtek Group, including its directors Arvind Dham and Gautam Malhotra.
The investigation into the bank fraud case began after the Central Bureau of Investigation (CBI) filed a First Information Report (FIR) against a group entity of Amtek Group, ACIL Limited. This fraud involved siphoning off loan funds to invest in real estate, foreign ventures, and new projects. The ED probe revealed that the group inflated sales, debtors, capital assets, and profits to secure additional loans and avoid non-performing asset (NPA) classification.
It was alleged that the shares of listed companies were rigged, and assets worth a significant amount were parked in shell companies’ names. The ED investigation also discovered the creation of numerous foreign assets and money being parked under new names through benami directors and shareholders. The raids were conducted following instructions from the Supreme Court to investigate the case, which dates back to recent measures in 2024. The ED continues to delve deeper into the case under the PMLA to uncover the extent of the fraudulent activities.
