Synopsis
The Enforcement Directorate has provisionally attached properties worth Rs 557.49 crore from the Amtek Group, including assets linked to Arvind Dham. This action follows a Supreme Court order for a probe into bank fraud allegations exceeding Rs 27,000 crore. Ongoing investigations reveal significant financial irregularities.Key Takeaways
- ED has attached assets worth Rs 557.49 crore from Amtek Group.
- Properties include land in Rajasthan and Punjab, valued at Rs 342 crore.
- Arvind Dham, promoter of Amtek Group, has been arrested.
- Investigation initiated based on Supreme Court's order.
- Allegations include bank fraud and manipulation of financial statements.
Gurugram, March 27 (NationPress) The Enforcement Directorate (ED), Gurugram Zonal Office, on Wednesday, provisionally attached movable and immovable properties valued at Rs 557.49 crore under the provisions of Prevention of Money Laundering Act (PMLA), 2002, in the case involving 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 Amtek Group promoter Arvind Dham and others, officials reported.
The asset attachment follows the provisional attachment of Rs 5115.31 crore dated September 5, 2024, confirmed by the PMLA Adjudicating Authority, according to ED officials.
The central probe agency had previously conducted searches at over 40 locations, leading to the arrest of Arvind Dham and a prosecution complaint filed on September 6, 2024.
The investigation commenced based on the Supreme Court's directive on February 27, 2024, during the hearing of a PIL against the Amtek Auto group, which mandated the ED to probe allegations of bank fraud amounting to Rs 27,000 crore.
The apex court expressed concern about the diversion of public funds, highlighting the need for a thorough investigation by the ED, even if the banks involved settled their accounts.
It was also noted that there were FIRs filed by the CBI stemming from complaints by IDBI Bank and the Bank of Maharashtra under various sections of the IPC, 1860, and the Prevention of Corruption Act, 1988, regarding allegations of illegally diverting loans, resulting in wrongful loss to the banks.
The attached assets include immovable properties, encompassing 145 acres of land in Rajasthan and Punjab, additional properties in Delhi/NCR valued at Rs 342 crore, fixed deposits and bank balances worth Rs 112.5 crore, and investments in shares, mutual funds, and AIF valued at Rs 123.9 crore.
All Amtek assets are categorized as direct Proceeds of Crime and are held through several companies beneficially owned by Arvind Dham, including assets of Amtek companies held by the bankers that sanctioned the loans, ED officials stated.
The attached assets also comprise investments made by notorious stock market operators in Mumbai, involved in securities fraud through listed companies of the Amtek group, along with third-party assets linked to the Amtek group's real estate ventures, assets of an Amtek company undergoing fraudulent insolvency proceedings, and assets alienated before the initiation of insolvency proceedings.
The ED probe has shown 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, faced insolvency, which resulted in significant haircuts exceeding 80 percent for the banks, causing substantial losses to public sector banks.
Furthermore, the ED's investigations revealed that the financial statements of group companies were deceitfully manipulated to secure additional fraudulent loans and create fictitious assets and investments within their books.
Ongoing investigations are being conducted, as stated by ED officials.
