Bank fraud: SC grants bail to Amtek Group ex-chairperson in ED case
New Delhi (PTI): The Supreme Court on Tuesday granted bail to former Amtek Group chairperson Arvind Dham in a money laundering case related to Rs 27,000 crore bank fraud.
A bench of Justices Sanjay Kumar and Alok Aradhe set aside a Delhi High Court order which had denied bail to him.
Justice Aradhe, who was sitting in a bench led by Justice PS Narasimha, pronounced the verdict, saying the court has allowed the appeal of Dham in the case.
The Delhi High Court had denied bail to Dham on August 19 last year, saying premature release could risk undermining efforts to secure accountability.
"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. These offences pose a significant challenge for investigating agencies, given the complex and intricate nature of the transactions and the involvement of multiple actors," the high court had said.
The high court added that a meticulous and thorough investigation was essential to ensure that innocent persons were not wrongfully implicated and that the actual offenders were brought to justice.
"The complexity of the case, the multiplicity of transactions, and the layered corporate structures necessarily entail a protracted trial," it had said.
The high court had said that the principle that economic offences warrant stringent treatment in bail matters was not absolute. However, "in cases involving large-scale diversion of public funds, the gravity of the offences assumes overriding significance."
"Given the serious repercussions for the economy and the banking sector, such offences undermine public confidence and harm depositors and creditors. Granting bail too liberally in such matters risks sending a counterproductive signal. Granting bail at this juncture would risk compromising both the trial and public confidence in the justice system. Continued custody is thus warranted," it had said.
Earlier, the ED provisionally attached assets worth over Rs 550 crore of Amtek Group firms, an insolvent automotive equipment manufacturing company, under the anti-money-laundering law.
Action was taken against Amtek Auto Limited, ARG Limited, ACIL limited, Metalyst Forging Limited, Castex Technologies Limited and Amtek Group promoter Arvind Dham, apart from some others, the ED had said.
Properties worth Rs 5,115.31 crore were attached by the agency in September, 2024.
The ED probe began under the Prevention of Money Laundering Act (PMLA) on the directions of the Supreme Court on February 27, 2024.
Dham was arrested by the agency in July, 2024 and chargesheeted in September, 2024.
The probe found the companies, along with other group concerns, were taken to insolvency, whose resolution led to a haircut of more than 80 per cent for the banks, causing "substantial" losses to these public sector financial institutions.
The financial statements of group companies were "deceitfully manipulated" to obtain additional fraudulent loans and create bogus assets and investments in the books of accounts, the agency alleged.
The provisionally-attached assets include 145 acres of land in Rajasthan and Punjab, some properties in Delhi-NCR valued in total at Rs 342 crore, apart from fixed deposits and bank balances worth Rs 112.5 crore.
All the Amtek assets are identified as "direct proceeds of crime" and held through several companies beneficially owned by Dham and assets of Amtek companies held by bankers who sanctioned the loans, according to the ED.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Rajnath Singh chairs IGoM meet, urges constant vigil over West Asia crisis
New Delhi (PTI): Defence Minister Rajnath Singh on Thursday emphasised the need for round-the-clock monitoring of the West Asia conflict and called for a calibrated response to deal with any eventuality to ensure that national interests remain protected.
Singh made the comments while chairing a high-level meeting of the Informal Group of Ministers (IGoM) set-up to monitor the situation in West Asia.
The meeting was attended by External Affairs Minister S Jaishankar, Finance Minister Nirmala Sitharaman, Oil Minister Hardeep Singh Puri, Power Minister Manohar Lal, Chemicals and Fertilizers Minister J P Nadda, Consumer Affairs Minister Prahlad Joshi and Minister of Railways, Information and Broadcasting, Electronics and Information Technology Ashwini Vaishnaw.
In view of the "uncertain situation", the defence minister underlined the importance of round-the-clock monitoring of the situation and the need to respond in a calibrated manner to deal with any eventuality, an official readout said.
He stressed on the need to leave no stone unturned to ensure that the people of the country face the minimum effect of the conflict, it said.
It was the second meeting of the IGoM after it was set up last month.
The IGoM was apprised of the measures being taken by the government in the wake of the ongoing West Asia conflict, Singh said on social media.
"We also deliberated upon the next steps to be taken by the government to mitigate any adverse impact arising due to the ongoing conflict," he said.
The defence ministry said in the readout said, "In the meeting, the seven empowered groups of secretaries briefed the IGoM on the steps being taken to tackle the situation."
"The IGoM was apprised about measures undertaken by the Ministry of Finance to address concerns arising due to global trade disruptions and provide relief and support to the industry, especially manufacturing, and bolster investor confidence," it said.
It listed measures including notification issued on Wednesday on full customs duty exemption on 40 critical petrochemical products till June 30.
The ministry also mentioned announcement of a special one-time relief measure for eligible units in SEZs to sell manufactured goods in Domestic Tariff Area (DTA) at concessional customs duty rates to be effective from April 1 to March 31.
It also noted another notification issued by the Department of Revenue clarifying that the provisions of GAAR (General Anti Avoidance Rules) will not be invoked in respect of investments made prior to April 1, 2017.
"These measures will reduce cost pressures on downstream sectors including textiles, packaging and pharmaceuticals, facilitate supply stability in the country and provide requisite clarity for investors contemplating investments in India," the readout said.
Defence Minister Singh appreciated the government's decision to impose a 25 per cent cap on the monthly increase in aviation turbine fuel prices for domestic operations, with effect from April 1.
This step will help protect the people from sudden increase in fares, he said.
The government has accorded highest priority to domestic LPG supply, with refinery production enhanced to fully meet consumption requirements, according to the readout.
"The IGoM was informed that there have been no reports of dry-out at LPG distributorships, and delivery of domestic LPG (liquefied petroleum gas) cylinders continues as per the normal schedule. The temporary supply concerns arose due to instances of hoarding and black marketing, which triggered panic buying in certain areas," it said.
The ministers were informed that strict enforcement action is being undertaken, with raids being carried out across multiple states and Union territories to curb hoarding and black marketing of LPG, the ministry said in the readout.
Action has also been taken against some LPG distributors who engaged in malpractices, it said.
"To support migrant labour and low-consumption households, the government is ensuring adequate availability of 5 kg free trade LPG cylinders, and since March 23, over 4.3 lakh such cylinders have been sold. Special focus is being given to states where demand is higher," it said.
The IGoM was apprised that industrial requirements dependent on commercial LPG are being met, with over 80 per cent of pre-crisis supply levels being maintained to ensure continuity of operations.
"Special meetings have been held with ministries and stakeholders of different industries to understand their demand and meet their needs. Oil PSUs are ensuring continued supply of Auto LPG across the country," the readout noted.
"However, some supply constraints are being faced by private operators due to their procurement challenges, which is why lines are being observed at PSU auto LPG pumps. Wherever the autos are dual feed and can use petrol, they are being encouraged to use petrol," it said.
