ED Raids Amtek Group's Premises in Delhi-NCR, Mumbai, Nagpur over Alleged Bank Loan Fraud
The Enforcement Directorate (ED) has conducted raids at multiple locations of Amtek Group and its directors, accused of perpetrating an alleged bank loan fraud of over Rs 20,000 crore, involving real estate, foreign investment, and shell companies.
Bank Loan FraudReal EstateForeign InvestmentShell CompaniesEnforcement DirectorateReal EstateJun 20, 2024
The raids were triggered after the Central Bureau of Investigation (CBI) filed an FIR against a group entity of Amtek, ACIL Limited, on allegations of a bank fraud of more than Rs 20,000 crore in a number of listed companies. These companies were finally taken over in NCLT proceedings at a nominal price, leaving the consortium of banks with nominal recovery.
In March 2024, the Supreme Court had sought an ED investigation into the matter. According to the ED, the fraud led to a loss of about Rs 10,000-Rs 15,000 crore to the exchequer. The agency believes that loan funds were 'siphoned off' to invest in real estate, foreign investment, and investment in new ventures.
Bogus sales, capital assets, debtors, and profit were shown in group concerns to get more loans, so that it doesn't get a non-performing assets (NPA) tag. It is alleged that the shares of listed companies were 'rigged', books of account were window dressed for obtaining higher loans through collusion of auditors/professionals.
Thousands of crores of assets have been allegedly parked in the name of shell companies, a number of foreign assets have been created, and money is still parked under new names through benami directors and shareholders, the ED found.
About Amtek Group
Amtek Group is an Indian business conglomerate with interests in automotive, infrastructure, and other sectors.
About Enforcement Directorate (ED)
The Enforcement Directorate (ED) is a law enforcement agency and economic intelligence agency responsible for enforcing economic laws and fighting economic crime in India.
Frequently Asked Questions
How much is the alleged bank loan fraud worth?
The alleged bank loan fraud is worth over Rs 20,000 crore.
What is the name of the group entity against which the CBI filed an FIR?
The CBI filed an FIR against ACIL Limited, a group entity of Amtek.
How many locations are being raided by the ED?
The ED is raiding around 35 business and residential premises across Delhi-NCR, Mumbai, and Nagpur.
What is the estimated loss to the exchequer due to the fraud?
The ED estimates that the fraud led to a loss of about Rs 10,000-Rs 15,000 crore to the exchequer.
What is the investigation agency responsible for enforcing economic laws in India?
The Enforcement Directorate (ED) is the investigation agency responsible for enforcing economic laws in India.
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