New Delhi [India], The Enforcement Directorate (ED) on Thursday conducted searches at 35 locations in Delhi-NCR and Maharashtra against Amtek Group in a bank fraud case involving over Rs 20,000 crore in several listed companies. Proceedings are being taken in NCLT at nominal value and the consortium of banks is getting nominal recovery.
ED's Gurugram-based zonal office is conducting these raids in Delhi, Gurugram, Noida, Mumbai and Nagpur under the Prevention of Money Laundering Act (PMLA) on MTech Group led by Arvind Dham, Gautam Malhotra and others.
ED said that the alleged fraud caused a huge loss to the exchequer of about Rs 10-15 thousand crore.
The ED investigation began on the basis of a First Information Report (FIR) by the Central Bureau of Investigation (CBI) into ACIL Limited, one of the group units, and in accordance with the Supreme Court's directions to investigate the fraud.
Further, the ED said its investigation revealed that the loan amount was used for investment in real estate, foreign investment and new ventures.
According to the agency, the group's concerns included showing fake sales, capital assets, debtors and profits to get more loans so that it does not get NPA.
"The allegation is that shares of listed companies were manipulated. Assets worth Rs 1,000 crore have been deposited in the name of shell companies. Some foreign assets have been created and the money is still deposited under new names," the ED said. "
ED's Gurugram-based zonal office is conducting these raids in Delhi, Gurugram, Noida, Mumbai and Nagpur under the Prevention of Money Laundering Act (PMLA) on MTech Group led by Arvind Dham, Gautam Malhotra and others.
ED said that the alleged fraud caused a huge loss to the exchequer of about Rs 10-15 thousand crore.
The ED investigation began on the basis of a First Information Report (FIR) by the Central Bureau of Investigation (CBI) into ACIL Limited, one of the group units, and in accordance with the Supreme Court's directions to investigate the fraud.
Further, the ED said its investigation revealed that the loan amount was used for investment in real estate, foreign investment and new ventures.
According to the agency, the group's concerns included showing fake sales, capital assets, debtors and profits to get more loans so that it does not get NPA.
"The allegation is that shares of listed companies were manipulated. Assets worth Rs 1,000 crore have been deposited in the name of shell companies. Some foreign assets have been created and the money is still deposited under new names," the ED said. "
