ED Raids 35 Locations in Massive Amtek Group Bank Fraud Case

The Enforcement Directorate conducted multi-city raids at over 35 locations linked to the Amtek Group in connection with an alleged bank fraud case involving over Rs 20,000 crore, suspecting diversion of loan funds.

The ED carried out raids on Thursday on more than 35 locations connected with Amtek Group in connection with a bank fraud case of over Rs 20,000 crore.

The searches were conducted in Delhi, Gurgaon, Noida, Mumbai, Nagpur, and other places under the Prevention of Money Laundering Act (PMLA). These raids were intended to collect evidence against the Amtek Group promoters namely Arvind Dham, Gautam Malhotra and others.

It is reported that several of the listed companies of the Amtek Group were acquired through NCLT processes at throwaway prices and thus the consortium of banks which had provided loans never got anything near the value of the amount they had given. This has been claimed to have cost the government a whopping Rs 10,000-15,000 crore to the Indian exchequer.

The ED believes that the funds availed under the loans were siphoned off and utilised by the accused for investing in properties, other businesses abroad and for starting new businesses. They used fraudulent procedures to increase the sales, fixed assets, debtors, and profits so that they could borrow more money and also to avoid being labeled as NPAs. This was allegedly achieved with the complicity of auditors and other professionals who conspired to alter the account records.

Research shows that the holding of shares in the listed companies of Amtek were manipulated and thousands of crores’ worth of assets were camouflaged under the shell companies. Foreign assets were also stated to have been made by investing under new names through benami directors and shareholders.

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The ED is probing all the money laundering from bottom to top to ascertain the operating procedure adopted by the accused to allegedly fraudulently withdraw bank loan money. The raids are a part of the agency’s anti-fraud operation that targets high profile corporate entities and individuals.