The Directorate of Enforcement (ED) has provisionally attached properties valued at Rs5.5 billion (USD 65.4 million) owned by the Amtek Group, its promoter Arvind Dham, and others under the Prevention of Money Laundering Act, 2002 (PMLA). The action was taken by the ED’s zonal office in Gurugram, Haryana.
This follows a previous attachment of Rs51.15 billion worth of assets on 5 September 2024, tied to the same entities. A day later, Arvind Dham was arrested after the ED conducted raids at more than 40 locations in connection with the bank fraud.
The latest asset attachment stems from a Supreme Court directive instructing the ED to probe fraudulent bank activities by the Amtek Auto group of companies. The investigation was triggered after IDBI Bank and Bank of Maharashtra filed criminal complaints, accusing the group of illegally diverting bank loan funds, leading to substantial losses.
Even though some loans had reportedly been settled, the apex court raised concerns about the misuse of public money.
According to the ED, all attached properties represent proceeds of crime. Their probe revealed that the Amtek Group underwent insolvency proceedings where banks faced an 80% haircut on dues. Financial records were also found to be manipulated to secure fraudulent loans, inflate asset values, and record fictitious investments.
This development marks a significant escalation in the financial crime case involving one of India’s prominent auto parts manufacturers.
