New Delhi: The Enforcement Directorate on Thursday said it has arrested the director of an insolvent automotive equipment manufacturing company as part of a money laundering probe related to an alleged bank loan fraud case worth Rs 25,000 crore.
Arvind Dham, the promoter and one of the directors of the Amtek Group, was arrested on Tuesday (July 9), he said in a statement.
A special Prevention of Money Laundering Act (PMLA) court in Delhi sent him to seven days of Enforcement Directorate (ED) custody after he was produced before it on Wednesday.
The money laundering case against the company and its directors arises from a CBI FIR that was registered on written complaints from IDBI Bank and Bank of Maharashtra, the ED said.
It was alleged that the loans were diverted through cheating, fraud and criminal breach of trust, causing unfair loss of value of Rs 673.35 crore to the banks, the agency said.
In February, the Supreme Court, while deciding a public interest petition against Amtek Auto group of companies, directed the ED to probe the case.
The agency last month carried out raids at the premises of Dham, another director of the company, Gautam Malhotra, and others in Delhi-NCR, Mumbai and Nagpur.
The ED said the Amtek group defaulted on loans exceeding Rs 25,000 crore taken from more than 15 banks.
Amtek group companies such as ARG Limited, ACIL Limited, Amtek Auto Limited, Metallic Forging Limited and Castex Technologies Limited, along with other group companies, were declared insolvent, the resolution of which has resulted in a huge cut of more than 80 percent for the banks. , causing substantial losses to the financial system, the agency said.
Dham, it alleged, was the "beneficial owner" of several benami properties in various companies, with Amtek group employees such as labourers, drivers, farm boys and people "with no links" to the group companies, acting as directors.
He continued to own such properties in his possession and "never disclosed them" to any of the banks or creditors, the agency said.
Arvind Dham, the promoter and one of the directors of the Amtek Group, was arrested on Tuesday (July 9), he said in a statement.
A special Prevention of Money Laundering Act (PMLA) court in Delhi sent him to seven days of Enforcement Directorate (ED) custody after he was produced before it on Wednesday.
The money laundering case against the company and its directors arises from a CBI FIR that was registered on written complaints from IDBI Bank and Bank of Maharashtra, the ED said.
It was alleged that the loans were diverted through cheating, fraud and criminal breach of trust, causing unfair loss of value of Rs 673.35 crore to the banks, the agency said.
In February, the Supreme Court, while deciding a public interest petition against Amtek Auto group of companies, directed the ED to probe the case.
The agency last month carried out raids at the premises of Dham, another director of the company, Gautam Malhotra, and others in Delhi-NCR, Mumbai and Nagpur.
The ED said the Amtek group defaulted on loans exceeding Rs 25,000 crore taken from more than 15 banks.
Amtek group companies such as ARG Limited, ACIL Limited, Amtek Auto Limited, Metallic Forging Limited and Castex Technologies Limited, along with other group companies, were declared insolvent, the resolution of which has resulted in a huge cut of more than 80 percent for the banks. , causing substantial losses to the financial system, the agency said.
Dham, it alleged, was the "beneficial owner" of several benami properties in various companies, with Amtek group employees such as labourers, drivers, farm boys and people "with no links" to the group companies, acting as directors.
He continued to own such properties in his possession and "never disclosed them" to any of the banks or creditors, the agency said.
