ED Attaches Assets Worth Rs 5,115 Cr In Amtek Group Loan Fraud Case
According to an ED statement, the accused illegally diverts bank loans worth Rs 27,000 crore
In an alleged bank loan fraud case against an insolvent automotive equipment manufacturing company, the Enforcement Department (ED) on Saturday disclosed that farm houses, hundreds of acres of agricultural and industrial lands across states, and shares and debentures worth over Rs 5,000 crore have been attached under the anti-money laundering law.
The move followed the federal agency's July arrest of Arvind Dham, the promoter of Amtek Group. The firm is currently under liquidation.
After receiving notice of a CBI FIR and a directive from the Supreme Court in February to investigate the matter, ED filed a case against the business and its owners under several provisions of the Prevention of Money Laundering Act (PMLA).
According to an ED statement, the accused was ‘illegally diverting’ bank loans and incurring loss to the lenders, for which the IDBI Bank and the Bank of Maharashtra had filed a CBI report. The estimated amount of the bank ‘fraud’ is Rs 27,000 crore.
It claimed that a number of the group's companies, including Amtek Auto, ARG, ACIL, Metalyst Forging, and Castex Technologies, were taken to insolvency and that their resolution resulted in a ‘huge haircut’ for the banks of more than 80 per cent, causing substantial losses to these public sector banks.
According to the ED, the probe discovered that the group firms' financial statements were deceitfully manipulated in order to secure more illicit loans and fabricate assets and investments in the books of accounts.
A complex network of over 500 shell companies, whose shareholdings were hidden in a highly complex shareholding structure, was discovered by the agency during searches it conducted in June for this case. The group used these companies to hold and invest in high-value real estate and luxury properties.
"These shell companies were holding assets, whose beneficial ownership has been revealed to be with Arvind Dham, the main promoter and beneficial owner of the Amtek group of companies and he was found to be alienating or transferring these assets," it said.
85 immovable properties, valued at Rs 2,674.75 crore and located in 13 different Indian states, are among the assets attached as part of a temporary order granted under the PMLA.
These include hundreds of acres in Haryana and Punjab, including in Gurugram, Chandigarh, Rewari, and Panchkula. Large commercial properties and farm houses at prime locations in Delhi, 200 hectares of land in Maharashtra. industrial lands, agricultural lands, residential plotted colonies, flats, etc., the agency said.
Moving assets comprised of shares valued at Rs 2,353.46 crore in listed and unlisted companies such as Alliance Integrated Metaliks, Newtime Infrastructure, Rollatainers, Adhbhut Infrastructure, Gourmet Gateway, Barista Coffee Company, and B S Ispat are also included in the attached assets, according to the ED.
The agency stated that debentures totaling Rs 87.10 crore had been attached, and that the properties under attachment have a combined value of Rs 5,115.31 crore.
