Supreme Court Grants Bail To Amtek Group Promoter Arvind Dham In Money Laundering Case

The Supreme Court today granted bail to Arvind Dham, promoter of the Amtek Group, in a money laundering case arising out of alleged bank fraud running into about Rs. 27,000 crores.A bench of Justice Sanjay Kumar and Justice Alok Aradhe allowed Dham's plea challenging the Delhi High Court's order refusing to grant him regular bail. The Court granted him bail on the ground of long incarceration of almost 17 months, observing - "There is no likelihood of trial commencing in the near future. The continued incarceration in such circumstances, particularly where the evidence which is primarily documentary in nature, is already in custody of the prosecution, violates the right of the appellant to speedy trial under Article 21 of the Constitution of India", the Court observed.The case against Dham arises from two ECIRs registered by the Enforcement Directorate on the basis of FIRs lodged by the Central Bureau of Investigation in December 2022. The FIRs were registered on complaints by the Bank of Maharashtra and IDBI Bank, alleging diversion and misuse of loan funds by group companies of the Amtek Group. The offences alleged in the FIRs include Sections 120B and 420 of the IPC and provisions of the Prevention of Corruption Act, 1988, which are scheduled offences under the Prevention of Money Laundering Act, 2002.According to the ED, the investigation relates to large-scale financial mismanagement and diversion of public funds by Amtek Group companies such as Amtek Auto Ltd., ACIL Ltd., Metalyst Forging Ltd., Castex Technologies Ltd. and ARGL Ltd. These companies had availed loans exceeding Rs. 26,000 crores from a consortium of public sector banks, including State Bank of India, IDBI Bank, Bank of Maharashtra and Karur Vysya Bank. The accounts later turned into non-performing assets.The ED's case is that forensic and transaction audits conducted during insolvency proceedings and examination of accounts since 2012-13 showed that loan funds were systematically diverted by Amtek Group companies instead of being used for their stated purpose of capital expansion. According to the agency, the audits allegedly revealed overstatement of fixed assets by more than Rs.15,000 crores through fictitious sales and purchases, false debit notes and inflated valuation entries, which were then used to obtain further credit from banks.The ED has alleged that substantial portions of the loan proceeds were routed through more than 500 group and shell entities controlled by Arvind Dham and his family members, with dummy directors acting on instructions. These funds were allegedly diverted for acquisition of land and real estate, investments in listed and unlisted companies, and transfers to related parties. The agency claims that beneficial ownership of these entities was deliberately concealed through layered corporate structures, family trusts and proxy shareholders to obscure the origin and control of the alleged proceeds of crime and to mislead lenders and regulators.The agency has alleged that Dham, as the promoter and controlling mind of the group, exercised control through hundreds of group and shell entities and was the ultimate beneficiary of the alleged proceeds of crime.Earlier, the Supreme Court, while dealing with a writ petition seeking a probe into alleged bank frauds exceeding Rs. 27,000 crores involving the Amtek Group, had noted prima facie diversion of public funds into land and real estate and had directed a detailed investigation.The ED has alleged that during the course of the investigation, it conducted searches at multiple locations in June 2024 and seized property documents, cash and jewellery. A provisional attachment order was later passed covering assets worth over Rs. 5,100 crores. A prosecution complaint was filed in September 2024 before the special PMLA court, arraigning Dham and other accused.Dham was arrested by the ED in July 2024. His bail application was rejected by the special court in January 2025, following which he approached the Delhi High Court. The High Court declined bail, holding that the allegations related to one of the largest economic offences in the country with total outstanding bank dues standing at Rs. 38,760 crores, that the twin conditions under Section 45 of the PMLA were not satisfied, and that the material on record indicated a risk of tampering with evidence and influencing witnesses.The High Court found that the material placed by the ED did not give rise to reasonable grounds to believe that Dham was not guilty of the offence. On the plea of being “sick and infirm”, the High Court relied on medical reports, including that of the AIIMS Medical Board, to hold that his condition was stable and could be managed in custody.Dham then moved the Supreme Court challenging the High Court's order. The Supreme Court has now granted him bail. Also from the judgment - Right To Speedy Trial Not Defeated By Gravity Of Offence; Prolonged Pre-Trial Detention Becomes Punishment: Supreme...

Supreme Court Grants Bail To Amtek Group Promoter Arvind Dham In Money Laundering Case

Amisha Shrivastava

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