ED raids 35 locations linked to Amtek Group in over Rs 20,000 crore bank fraud case

NEW DELHI: Enforcement Directorate (ED) carried out search operations under the Prevention of Money Laundering Act (PMLA) against the Amtek Group, led by Arvind Dham, Gautam Malhotra, and others. The searches were conducted at more than 35 locations across Delhi, Gurgaon, Noida, Mumbai, Nagpur, and other cities in connection with a massive bank fraud case involving more than Rs 20,000 crores.The case involves several listed companies that were ultimately taken over in NCLT proceedings at nominal prices, resulting in minimal recovery for the consortium of banks.
This situation has led to a significant loss to the exchequer, estimated to be approximately Rs 10,000 to 15,000 crores.
The exchequer suffered a substantial loss, estimated to be around Rs 10,000-Rs 15,000 crore. The agency suspects that the loan funds were misappropriated and diverted towards investments in real estate, foreign ventures, and new business initiatives, news agency PTI reported quoting ED sources.
The sources revealed that the group concerned allegedly resorted to fraudulent practices, such as inflating sales, capital assets, debtors, and profits, in order to secure additional loans and avoid being classified as non-performing assets (NPA). It is suspected that this was achieved through the collusion of auditors and professionals who manipulated the books of account.
The ED discovered that "the shares of listed companies were 'rigged' and a significant amount of assets, amounting to thousands of crores, were allegedly hidden under the guise of shell companies. Furthermore, the agency found that numerous foreign assets were created, and funds continue to be parked under new names, with the help of benami directors and shareholders.
Further investigations have revealed that the loan funds were allegedly siphoned off to invest in real estate, foreign investments, and new ventures. The group concerned also allegedly showed fictitious sales, capital assets, debtors, and profits to secure more loans and avoid being classified as non-performing assets (NPA).