Major Asset Seizure in Amtek Group Fraud Case

In a significant crackdown on alleged financial misconduct, the **Enforcement Directorate (ED)** has taken steps to attach farmlands, extensive agricultural and industrial properties, and shares and debentures exceeding ₹5,000 crore. This action relates to a scandal involving an insolvency-bound automotive equipment manufacturer.

Background

The ED’s latest move follows the arrest of **Arvind Dham**, the promoter of the **Amtek Group**, back in July. The company is currently undergoing liquidation as part of the legal proceedings.

The Allegations

Under various sections of the **Prevention of Money Laundering Act (PMLA)**, the ED has initiated an investigation into the activities of the company and its promoters. This development is in response to a complaint filed by the **Central Bureau of Investigation (CBI)** and a directive from the **Supreme Court** in February for an in-depth probe.

The allegations stem from a complaint by **IDBI Bank** and the **Bank of Maharashtra**, which accused the group of “illegally diverting” bank loans and inflicting substantial financial losses totaling approximately ₹27,000 crore.

Impact on the Financial Sector

Several subsidiaries of the **Amtek Group**, including **Amtek Auto Limited, ARG Limited, ACIL Limited, Metalyst Forging Limited**, and **Castex Technologies Limited**, are embroiled in insolvency proceedings. This situation has resulted in a staggering loss of over 80% for the banks involved, creating a significant financial strain on these public sector lenders.

Manipulation of Financial Statements

Investigations revealed that the financial records of the group were “deceitfully manipulated” to secure fraudulent loans, allowing the company to fabricate nonexistent assets and investments on their balance sheets.

Uncovering the Web of Deceit

During a series of searches conducted by the ED in June, authorities uncovered a complex network involving more than 500 shell companies. These entities were allegedly utilized by the group to manage and invest in valuable real estate and luxury properties, all shielded under an intricate shareholding structure.

Further investigations indicated that these shell companies were holding assets with beneficial ownership traced back to **Arvind Dham**, who was reportedly in the process of alienating or transferring these assets.

Assets Under Attachment

The assets attached under a provisional order issued pursuant to the PMLA consist of an impressive 85 immovable properties valued at ₹2,674.75 crore, dispersed across 13 states in India. This extensive portfolio includes:

• Large commercial properties and farmhouses in prime locations in **Delhi**
• 200 hectares of land in **Maharashtra**
• Hundreds of acres in **Haryana** and **Punjab**, covering areas like **Gurugram, Chandigarh, Rewari**, and **Panchkula**
• Industrial land, agricultural land, residential plots, and several flats

Additionally, the attached assets encompass movable properties, including shares valued at ₹2,353.46 crore in both listed and unlisted companies such as **Alliance Integrated Metaliks Limited**, **Newtime Infrastructure Limited**, **Rollatainers Limited**, **Adhbhut Infrastructure Limited**, **Gourmet Gateway Limited**, **Barista Coffee Company Limited**, and **B S Ispat Limited**. Furthermore, debentures worth ₹87.10 crore have also been included in the attachable assets. The total value of these properties now stands at ₹5,115.31 crore.