The searches are being conducted at over 35 locations allegedly connected to Amtek Group by the Enforcement Directorate(ED) in relation to a bank fraud of ₹20,000 crore.
“Raids are being conducted across Delhi, Gurugram, Noida, Mumbai, Nagpur and other parts of India on Amtek Group headed by Arvind Dham, Gautam Malhotra and other senior management officials,” reports revealed.
The alleged fraud was done through several listed companies which were eventually acquired for a pittance in National Company Law Tribunal (NCLT) proceedings leaving lending banks with nominal recovery.
“This caused losses to the exchequer about ₹10,000 crore to ₹15,000 crore,” it said.
ED had launched an investigation based on a First Information Report filed by Central Bureau of Investigation CBI FIR that named one group entity ACIL Limited and as per Supreme Court directions to probe the fraud.
According to investigations made by this department loan funds were diverted into real-estate and new ventures; also they have been used for overseas investments. However the group concerns kept showing fictitious sales capital assets debtors profit so as to receive more loans hence avoiding it from becoming non-performing asset.
It is also claimed that the shares of these listed companies were rigged. As per ED’s purported findings there are thousands of crores worth of assets parked under shell companies’ names with many foreign assets having been created while still holding those funds under their new names.
