Rs 27,000 cr bank loan fraud: ED attaches biz group's land, shares, and farm houses unde PMLA

Indian authorities have attached properties worth more than Rs 5,000 crore under the anti-money laundering law in connection with an alleged bank loan fraud involving insolvent automotive equipment manufacturer Amtek Group, the Enforcement Directorate said Saturday (September 7).

The IDBI Bank and Bank of Maharashtra had filed a complaint with the Central Bureau of Investigation (CBI), accusing the group of "illegally diverting" bank loans and causing significant losses to the lenders. According to the ED, the fraud is estimated at around Rs 27,000 crore.

The Rs 27,000 crore loan fraud

Several Amtek Group companies, including Amtek Auto Limited, ARG Limited, ACIL Limited, Metalyst Forging Limited, and Castex Technologies Limited, went into insolvency, resulting in an "80 per cent haircut" for banks, causing substantial losses to public sector lenders.

Investigations revealed that the group had "deceitfully manipulated" its financial statements to obtain fraudulent loans and create fake assets and investments.

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In June, ED searches uncovered a complex network of over 500 shell companies used by the group to hold and invest in high-value real estate and luxury properties, with their ownership concealed through a "highly complex shareholding structure."

The ED's statement said these shell companies held assets whose beneficial ownership was linked to Dham, who was found to be alienating or transferring these properties.

Multiple assets attached

The ED filed the case against the company and its promoters under the Prevention of Money Laundering Act (PMLA), based on a CBI FIR and a Supreme Court directive issued in February.

As part of the provisional order under the PMLA, 85 immovable properties valued at Rs 2,674.75 crore were attached. These assets include commercial properties and farmhouses in Delhi, 200 hectares of land in Maharashtra, and hundreds of acres of land in Haryana and Punjab, including prime locations in Gurugram, Chandigarh, Rewari, and Panchkula.

In addition to real estate, the attached assets include shares worth Rs 2,353.46 crore in both listed and unlisted companies, such as Alliance Integrated Metaliks Limited, Newtime Infrastructure Limited, Rollatainers Limited, and Barista Coffee Company Limited. Debentures worth Rs 87.10 crore were also seized, bringing the total value of attached properties to Rs 5,115.31 crore, the ED said.

With inputs from PTI