Rs.25,000 crore Bank Fraud: ED arrested Amtek Group Promoter on complaint from Bank of Maharashtra and IDBI Bank
On Thursday, July 11, the Directorate of Enforcement (ED) arrested Arvind Dham, promoter of the Amtek Group, under the Prevention of Money Laundering Act (PMLA), 2002. Dham’s arrest is linked to a bank fraud case exceeding ₹25,000 crore, involving ACIL Ltd and other entities.
“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 the 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 ₹25,000 crore. The Hon’ble Special Court (PMLA), Rouse Avenue, Delhi has granted 07 days of custody to the ED,” stated the ED.
The ED’s investigation followed CBI FIRs based on complaints from IDBI Bank and Bank of Maharashtra, alleging that bank loans were unlawfully diverted through deceit, fraud, and breach of trust, causing a wrongful loss of ₹673.35 crore.
On February 27, 2024, the Supreme Court, addressing a public interest petition against the Amtek Auto group, directed the ED to investigate the case, potentially uncovering money laundering offenses under the PMLA, 2002.
The probe revealed that the Amtek Group defaulted on loans exceeding ₹25,000 crore from over 15 banks, involving companies like ARG Limited, ACIL Limited, Amtek Auto Limited, Metalic Forging Limited, and Castex Technologies Limited, among others, all of which entered insolvency proceedings. The resolution of these insolvencies led to banks facing substantial losses, with haircuts exceeding 80%, significantly impacting the financial system.
Further inquiries found that Arvind Dham owned numerous benami properties, registered under companies where Amtek Group employees — from peons to drivers and field workers — acted as nominal directors. These properties were not disclosed to banks or creditors.
It is unfortunate that frauds and fraudsters continue to be a free loot from banks despite strong regulatory steps understood to be in vogue and RBI is very sensitive and concerned with regulatory and supervisory non compliance .The kYc seems to be only for deposit and individual customers where as borrowers and corporate frauds through various means continue to take banks for a ride . I think fraudsters have better KYB and understanding of regulatory and supervisory weaknesses . The corrupt practices reflect in more frauds and loot . Time RBI becomes more pro active and extra vigilant in fixing the frauds of all kinds and save the banks from loot.