Director of Amtek Group Arrested for Alleged Rs 25,000 Crore Bank Loan Fraud

The Enforcement Directorate has arrested Arvind Dham, a director of the Amtek Group, in connection with a money laundering probe tied to an alleged Rs 25,000-crore bank loan fraud. The company is accused of diverting loans through fraud, leading to significant financial losses for multiple banks.

The Enforcement Directorate (ED) on Thursday announced the arrest of Arvind Dham, director of the now-insolvent automotive equipment manufacturing firm, Amtek Group, in relation to an ongoing money laundering investigation involving a suspected Rs 25,000-crore bank loan fraud.

Dham, who serves as the promoter and one of the directors of the Amtek Group, was detained on July 9. A special Prevention of Money Laundering Act (PMLA) court in Delhi subsequently placed him in ED custody for seven days after his court appearance on Wednesday.

The case originates from a CBI FIR based on written complaints from IDBI Bank and Bank of Maharashtra. The FIR alleges that loans were fraudulently diverted, causing a Rs 673.35 crore loss to the banks. The Supreme Court had directed the ED in February to probe into the company following a public interest petition.

Last month, the ED carried out raids at the premises of Dham and other directors, including Gautam Malhotra, across Delhi-NCR, Mumbai, and Nagpur. The Amtek group allegedly defaulted on loans exceeding Rs 25,000 crore borrowed from over 15 banks.

The ED reported that Amtek group companies, including ARG Limited, ACIL Limited, Amtek Auto Limited, Metallic Forging Limited, and Castex Technologies Limited, have been driven to insolvency, resulting in a significant haircut of over 80% for the banks.

The agency accused Dham of being the 'beneficial owner' of numerous benami properties held in various companies, using employees with no direct connection to the firm as directors. These assets were never disclosed to banks or creditors.

(With inputs from agencies.)