The Enforcement Directorate is conducting a search operation on Thursday in at least 35 premises of the Amtek Group in connection with a bank fraud case of over Rs 20,000 crore, according to NDTV. This alleged fraud involved multiple listed companies, acquired at nominal prices through the National Company Law Tribunal proceedings, leading to minimal recovery for the consortium of banks.
The search operation spans Delhi, Gurgaon, Noida, Mumbai, and Nagpur. The fraud has resulted in a substantial loss to the exchequer, estimated between Rs 10,000 to 15,000 crore, it reported.
The ED's investigation was initiated based on a Central Bureau of Investigation's first information report against ACIL Ltd., one of the group's entities, and the Supreme Court's directions. The probe revealed that loan funds allegedly were siphoned off for real estate, foreign investments, and new ventures. Fictitious sales, capital assets, debtors, and profits were shown to secure additional loans, preventing the accounts from being classified as non-performing assets, according to NDTV.
Listed companies' shares were allegedly rigged, books of account were window-dressed for obtaining higher loans through collusion of auditors and professionals. Thousands of crores of assets have been parked in shell companies' names. A number of foreign assets have been created and money is still parked under the new names through benami directors and shareholders. An investigation is in progress, NDTV reported.
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