ED Charges 56 in Amtek Auto Bank Fraud Case

Speedy Summary

• The Enforcement Directorate (ED) filed a supplementary prosecution complaint against 56 accused in connection with bank loan fraud involving Amtek Auto Limited and associated companies.
• Assets worth ₹6,261.37 crore were attached, valued mostly at book value.
• Accused include entities such as ARGL Limited, ACIL Limited, Metalyst Forging Limited, Castex Technologies Limited; promoter Arvind Dham; family members; Chartered Accountants; bankers; resolution professionals; and stock market operators.
• The ED probe was initiated under Supreme Court directive dated Febuary 27, 2024, relating to allegations of large-scale money laundering by the Amtek Group using loans from public sector banks.
• It was found that certain Chartered accountants filed fraudulent audit reports concealing fictitious asset inflation and the diversion of funds. Bankers allegedly sanctioned loans by disregarding RBI guidelines for personal benefits or loan evergreening programs.
• Stock market operators purportedly helped defraud foreign portfolio investors of ₹1,000 crore through price manipulation in Castex Technologies shares for artificial price rigging purposes.
• Post-default on loan repayments, creditors took 15 group companies to the National Company Law Tribunal (NCLT), resolving cases with an approximate haircut of 81%. Assets were allegedly undervalued or transferred via benami entities before NCLT proceedings began.
• Personal insolvency proceedings against Arvind Dham showed creditor claims exceeding ₹38,000 crore vs His alleged resolution offer worth only ₹35 crore while lenders recovered about ₹6,300 Under IBC overall simultaneously occurring maze shell’ layer network+= total off funding attachmentco nodings

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