Supreme Court grants bail to Arvind Dham in Rs 25,000-crore Amtek Group Bank fraud case

The Supreme Court of India on Tuesday granted bail to Arvind Dham, the former chairman of the beleaguered Amtek Group, in connection with an alleged Rs 25,000-crore bank fraud and money-laundering case, marking a significant turn in the long-running legal battle over one of the nation’s largest corporate financial scandals.

Dham, who was arrested by the Enforcement Directorate (ED) in July 2024 under the Prevention of Money Laundering Act (PMLA), has been in judicial custody for more than 18 months as authorities probed an extensive alleged scheme involving the diversion of bank loans and misappropriation of funds.

In its order, the Supreme Court granted bail on conditions that include surrendering his passport to prevent potential flight risk. The bench did not stay the ongoing prosecution, which is still being investigated and is set to proceed through trial courts.

The case stems from complaints filed by major lenders, including IDBI Bank and Bank of Maharashtra, and subsequent FIRs were registered by the Central Bureau of Investigation (CBI) alleging that loans extended to Amtek Group entities were diverted through fraud, cheating, and criminal breach of trust, resulting in a wrongful loss reported to be worth hundreds of crores.

The ED invoked provisions of the PMLA following directions from the Supreme Court to thoroughly investigate suspected money-laundering and bank fraud linked to the group’s financial dealings. Amtek companies, including ACIL Ltd., Amtek Auto Ltd., Metallic Forging Ltd., Castex Technologies Ltd., and ARG Ltd., had defaulted on loans taken from more than 15 banks, triggering insolvency proceedings.

During the insolvency process, creditors reportedly suffered significant haircuts — in some instances more than 80 percent — underscoring the scale and severity of the financial disruption caused by the defaults. Dham was also accused of being the beneficial owner of several benami properties through layered corporate structures and of failing to disclose assets to creditors and regulatory authorities.

Earlier, in August 2025, the Delhi High Court had denied bail to Dham, pointing to the “exceptional magnitude” of the economic offences and the need to preserve the integrity of the investigation.

Legal experts say the Supreme Court’s bail order highlights the balancing of individual liberty against prosecution interests in prolonged and complex economic offence cases, with the trial yet to reach substantive stages.