Complaints were registered by IDBI Bank and Bank of Maharashtra on allegations of diverting bank loans through cheating, fraud and criminal breach of trust
FinTech BizNews Service
Mumbai, July 13, 2024: Directorate of Enforcement (ED), Gurugram Zonal Office has arrested Arvind Dham, Promoter of Amtek Group of Companies on 09.07.2024 under the provisions of Prevention of Money Laundering Act (PMLA), 2002 in the case of M/s ACIL Limited and others, in connection with a Bank fraud case of more than Rs. 25,000 Crore. The Hon’ble Special Court (PMLA), Rouse Avenue, Delhi was pleased to grant 07 days custody to ED, as per a press release issued by the ED.
ED initiated investigation on the basis of FIRs registered by CBI arising from the complaints by IDBI Bank and Bank of Maharashtra, on allegations of diverting bank loans through cheating, fraud and criminal breach of trust and causing wrongful loss to the banks under various section of of IPC, 1860 & Prevention of Corruption Act, 1988 to the tune of Rs. 673.35 Crore. Further, Hon’ble Supreme Court on 27.02.2024, while deciding a Public Interest Petition against M/s Amtek Auto group of companies, directed ED, being armed with extensive mechanism, to investigate the case which may lead to unearthing of money laundering offences punishable under PMLA, 2002.
ED investigation revealed that the Amtek group had defaulted on the loans exceeding Rs25,000 Crore of more than 15 Banks. The group companies namely M/s ARG Limited, M/s ACIL limited, M/s Amtek Auto Limited, M/s Metalic Forging Limited and M/s Castex Technologies Limited along with other Group concerns were taken to insolvency, whose resolution has led to huge haircut of more than 80% for the banks causing substantial loss to the financial system. Further, investigations have also revealed that Arvind Dham was the beneficial owner of several benami properties in companies with employees of the Amtek Group like peons, drivers, field boys and persons with no linkage to the group companies, acting as directors. Arvind Dham has continued to possess such properties beneficially held by him and never disclosed it to any of the banks/creditors. Further investigation is under progress.