ED Raids Uncover Massive Bank Fraud by Amtek Group

The Enforcement Directorate conducted raids on 35 premises associated with the Amtek Group in connection with a bank loan fraud exceeding Rs 20,000 crore. The investigation revealed siphoned funds, bogus sales, and rigged shares, resulting in significant losses to the exchequer.

The Enforcement Directorate (ED) on Thursday executed extensive searches across 35 locations in Delhi-NCR, Mumbai, and Nagpur. This action pertains to a money laundering inquiry into the Amtek Group and its promoters, accused of orchestrating a bank loan fraud surpassing Rs 20,000 crore, according to official sources.

The raids targeted the business and residential premises of the Amtek Group's directors, including high-profile names like Arvind Dham and Gautam Malhotra. Sources disclose that operations have been ongoing since morning in areas including Delhi, Gurugram, Noida, Mumbai, and Nagpur.

The investigation originates from a CBI FIR concerning ACIL Limited, a unit of the Amtek Group. Allegations point to a massive bank fraud within several listed companies, ultimately taken over in NCLT proceedings at negligible prices, causing severe financial hardship for a consortium of banks. The probe was further mandated by the Supreme Court, sources confirmed.

The ED's findings indicate a colossal financial blow to the exchequer, estimating losses between Rs 10,000 crore and Rs 15,000 crore. Investigation reveals that loan funds were illicitly diverted towards real estate, foreign investments, and new ventures. Additionally, bogus sales, inflated capital assets, and fictitious profits were reported to secure higher loans, avoiding an NPA tag. Allegations also suggest that shares of listed companies were manipulated, financial records were falsified, and collusions with auditors/professionals were instrumental in obtaining higher loans.

The inquiry identified thousands of crores in assets ostensibly held under shell companies, with considerable investments concealed as foreign assets and benami holdings under new names, ED sources added.

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