Amtek Group Loan Fraud- ED attaches properties of propertoes worth over Rs. 5000 cr
The assets include 85 immovable properties valued at Rs. 2,674.75 crores, spread across 13 different states in India which include large commercial properties and farm houses in prime location in Delhi, 200 hectares of land in Maharashtra, hundreds of acres of land in Haryana and Punjab including Gurgaon, Chandigarh, Rewari and Panchkula, industrial lands, agricultural lands, residential plotted colonies, flats.
New Delhi, September 9
The Directorate of Enforcement (ED), Gurugram has provisionally attached movable and immovable properties valuing Rs. 5,115.31 crores 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 Limited, Arvind Dham, promoter Amtek Group and others.
The officials noted that the group companies namely M/s Amtek Auto Limited, M/s ARG Limited, M/s ACIL limited, M/s Metalyst Forging Limited and M/s Castex Technologies Limited along with other Group concerns were taken to insolvency, whose resolution had led to huge haircut of more than 80% for the banks causing substantial losses to these public sector banks.
The assets attached by the provisional order of attachment include 85 immovable properties valued at Rs.
2,674.75 crores, spread across 13 different states in India which include large commercial properties and farm houses in prime location in Delhi, 200 hectares of land in Maharashtra, hundreds of acres of land in Haryana and Punjab including Gurgaon, Chandigarh, Rewari and Panchkula, industrial lands, agricultural lands, residential plotted colonies, flats.
The ED investigations revealed that financial statements of group companies were deceitfully manipulated to obtain additional fraudulent loans and create bogus assets and investments in the books of accounts.
ED had conducted searches in June, 2024 which resulted in unearthing a complex web of more than 500 shell companies used by the group to hold and invest in high value real estate and luxury properties, whose shareholdings were concealed in a “highly complex shareholding structure”.
These shell companies were holding assets, whose beneficial ownership has been revealed to be with Arvind Dham, the main promoter and beneficial owner of M/s Amtek group of companies and was found to be alienating / transferring those assets. Hence, ED on 09.07.2024 arrested Arvind Dham, Promoter of Amtek Group of Companies under the provisions of PMLA, 2002, officials further noted.
ED initiated investigation on the basis of FIRs registered by CBI arising from the complaints by IDBI Bank
and Bank of Maharashtra under various sections of IPC, 1860 and Prevention of Corruption Act, 1988, on allegations of illegally diverting bank loans by causing wrongful loss to the banks. Further, the Supreme Court in February 2024 while hearing the PIL against M/s Amtek Auto group of companies, directed ED to investigate the case involving bank fraud by Amtek Auto Group to the tune of Rs. 27,000 Crore. The Hon’ble Court expressed concerns regarding the diversion of public money, emphasizing the necessity of a comprehensive investigation by the ED, even if the banks concerned had settled the accounts.
In addition, the attachment also includes movable assets, being shares worth Rs. 2,353.46 Crore in both listed and unlisted companies. Some of these companies include Alliance Integrated Metaliks Limited, Newtime Infrastructure Limited, Rollatainers Limited, Adhbhut Infrastructure Limited, Gourmet Gateway Limited, Barista Coffee Company Limited, B S Ispat Limited. Furthermore, debentures amounting to Rs. 87.10 Crore have been attached. All these assets are identified as direct Proceeds of Crime and are held through several companies beneficially owned by Arvind Dham, officials stated.
