In a major escalation of its probe into the ₹27,000 crore Amtek Auto bank fraud case, the Enforcement Directorate’s Gurugram Zonal Office has provisionally attached movable and immovable properties valued at ₹557.49 crore under the Prevention of Money Laundering Act (PMLA), 2002. This action targets Amtek Group companies including 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 promoter Arvind Dham and other associates.
Case Background & Supreme Court Directive
The investigation was initiated following a February 27, 2024 Supreme Court order during a PIL hearing that:
- Directed ED to probe the ₹27,000 crore bank fraud despite some bank settlements
- Highlighted concerns about systemic diversion of public funds
- Noted existing CBI FIRs filed by IDBI Bank and Bank of Maharashtra under:
- IPC, 1860 (cheating, forgery)
- Prevention of Corruption Act, 1988
Key Attached Assets
ED has attached following items:
Immovable Properties (₹342 crore):
- 145 acres of land in Rajasthan and Punjab
- Multiple properties across Delhi-NCR
Financial Instruments (₹236.49 crore):
- Fixed deposits & bank balances (₹112.5 crore)
- Shares, mutual funds & AIF investments (₹123.9 crore)
Modus Operandi Uncovered: How Fraud was done?
ED investigations revealed that fraud was done using various tactics such as:
- Financial Manipulation: Group companies falsified financial statements to secure additional loans
- Asset Creation: Bogus investments were recorded in books to inflate company valuations
- Insolvency Fraud: Companies were deliberately pushed into insolvency, forcing 80%+ haircuts for banks
- Third-Party Laundering: Proceeds were channeled through real estate verticals and stock market operators
Previous Enforcement Actions
- September 5, 2024: ₹5,115.31 crore attachment (confirmed by PMLA Adjudicating Authority)
- September 6, 2024: Prosecution Complaint filed after arresting Arvind Dham
- 40+ locations searched across multiple states
Ongoing Investigation Focus
The ED continues to:
- Trace additional proceeds of crime
- Investigate role of stock market operators in securities fraud
- Examine fraudulent insolvency proceedings
- Identify pre-insolvency asset alienation attempts
This action underscores ED’s commitment to recovering public funds lost to corporate fraud, with total attachments now exceeding ₹5,672 crore in this case. The agency has vowed to pursue all connected entities involved in this elaborate financial deception.