ED raids several locations of Amtrack Group in Delhi-NCR, Mumbai, Nagpur in Rs 20,000 crore bank fraud case 

The Enforcement Directorate (ED) on June 20 conducted raids at multiple locations across Delhi-NCR, Mumbai and Nagpur, which are linked to Amtek Group and its directors, who are accused for perpetrating an alleged bank loan fraud of over Rs 20,000 crore. 

About 35 business and residential premises in Delhi, Gurugram, Noida, Mumbai and Nagpur are being raided since this morning. 

The raids were triggered after CBI filed an FIR against a group entity of Amtek -- ACIL Limited -- on allegations of a bank fraud of more than Rs 20,000 crore in a number of listed companies, which were finally taken over in NCLT proceedings at nominal price leaving the consortium of banks with nominal recovery, they said. 

In March 2024, the Supreme Court had sought an ED investigation in the matter. 

According to ED, the fraud led to a loss of about Rs 10,000-Rs 15,000 crore to the exchequer. It believes that loan funds were “siphoned off” to invest in real estate, foreign investment and investment in new ventures. 

Bogus sales, capital assets, debtors and profit were shown in group concerns to get more loans so that it doesn’t get non-performing assets (NPA) tag. 

It is alleged that the shares of listed companies were “rigged”, books of account were window dressed for obtaining higher loans through collusion of auditors/professionals. 

Thousands of crores of assets have been allegedly parked in the name of shell companies, a number of foreign assets have been created and money is still parked under the new names through benami directors and shareholders, the ED found. 

(With PTI inputs)