News

Supreme Court Grants Bail in Rs 27,000 Crore Amtek Bank Fraud Case

by CBIA Team

Updated January 09, 2026

The Supreme Court has granted bail to Arvind Dham, former chairperson of the Amtek Group, in a money laundering case connected to a Rs 27,000 crore bank fraud that has sent shockwaves through India's financial system. The decision overturns a previous ruling by the Delhi High Court, which had denied bail citing concerns about undermining accountability and the complex nature of economic offenses.

The bench of Justices Sanjay Kumar and Alok Aradhe set aside the High Court's order, with Justice Aradhe pronouncing the verdict that allowed Dham's appeal. The case represents one of India's largest bank fraud investigations and highlights the challenges authorities face in combating sophisticated financial crimes.

Background and Context

The Enforcement Directorate's investigation into the Amtek Group began under the Prevention of Money Laundering Act (PMLA) following Supreme Court directions issued on February 27, 2024. The probe centers on allegations that the once-prominent automotive equipment manufacturer engaged in systematic financial manipulation that resulted in substantial losses to public sector banks.

According to investigators, the Amtek Group companies—including Amtek Auto Limited, ARG Limited, ACIL Limited, Metalyst Forging Limited, and Castex Technologies Limited—were deliberately steered into insolvency proceedings. The resolution process resulted in banks receiving less than 20% of their outstanding loans, representing a haircut of more than 80% and causing "substantial" losses to public sector financial institutions.

Key Figures and Entities

Arvind Dham, the former chairperson and promoter of the Amtek Group, was arrested by the Enforcement Directorate in July 2024 and subsequently chargesheeted in September 2024. Court documents identify Dham as the beneficial owner of multiple shell companies allegedly used to conceal proceeds of crime.

The investigation involves several Amtek Group entities and their associated companies. According to Enforcement Directorate filings, these organizations collectively manipulated financial statements to obtain additional fraudulent loans and create fictitious assets and investments in their accounts.

Legal and Financial Mechanisms

The Enforcement Directorate has attached assets worth over Rs 5,115.31 crore as part of its investigation, including an initial provisional attachment of Rs 550 crore. The seized assets include 145 acres of land across Rajasthan and Punjab, properties in the Delhi-NCR region valued at Rs 342 crore, and fixed deposits and bank balances totaling Rs 112.5 crore.

Investigators allege that all attached assets constitute "direct proceeds of crime" held through multiple companies beneficially owned by Dham. The complex corporate structure created layers of ownership that obscured the true beneficiaries, making tracking the funds challenging for authorities. The Delhi High Court had noted that "the complexity of the case, the multiplicity of transactions, and the layered corporate structures necessarily entail a protracted trial."

International Implications and Policy Response

The Amtek case underscores growing concerns about sophisticated financial crimes in an increasingly digital economy. In its August 2024 ruling denying bail, the Delhi High Court emphasized that "with the advancement of technology and Artificial Intelligence, economic offences such as money laundering have emerged as a serious threat to the financial system of the country."

The case has sparked discussions about strengthening regulatory frameworks to prevent similar large-scale frauds. Financial experts point to the need for enhanced corporate transparency requirements and more robust oversight mechanisms for loan approval processes, particularly in cases involving complex corporate structures with multiple subsidiaries and cross-ownership arrangements.