ED Conducts Raids Across Delhi-NCR, Mumbai, and Nagpur in Rs 20,000 Crore Bank Fraud Case

Mumbai, 20th June 2024: The Enforcement Directorate conducted searches on Thursday at approximately 35 locations in Delhi-NCR, Mumbai, and Nagpur as part of a money laundering investigation involving a company and its promoters accused of orchestrating a bank loan fraud exceeding Rs 20,000 crore. Officials targeted premises associated with the Amtek Group and its directors, including Arvind Dham and Gautam Malhotra, across various business and residential sites in Delhi, Gurugram, Noida, Mumbai, and Nagpur.

The investigation originates from a CBI FIR against ACIL Limited, a group entity of Amtek, alleging bank fraud in multiple listed companies acquired through NCLT proceedings at minimal cost, resulting in significant financial losses for banks. The Supreme Court had also directed the ED to conduct an investigation.

According to ED sources, the fraud led to an estimated loss of Rs 10,000 to Rs 15,000 crore to the exchequer. Funds obtained through loans were allegedly diverted to real estate, foreign investments, and new ventures. The group allegedly inflated sales, assets, debtors, and profits to secure additional loans and avoid non-performing asset (NPA) classification.

The ED suspects collusion with auditors and professionals to manipulate stock prices and financial records. Assets worth thousands of crores were purportedly transferred to shell companies, with foreign assets and funds allegedly concealed under benami directors and shareholders.