Delhi HC Dismisses Bail Plea of Amtek Group’s Former Chairman in Rs. 2,700 Crore Bank Fraud Case

The Delhi High Court on Tuesday, August 19, 2025, dismissed the bail plea of Arvind Dham, former Chairman of the Amtek Group, who has been in custody since July 2024 following his arrest by the Enforcement Directorate (ED) in connection with a Rs. 2,700 crore bank fraud case.

The order was passed by Justice Ravinder Dudeja, who had reserved it earlier this month after hearing extensive arguments from both sides.

During the hearing, Special Counsel Zoheb Hossain, appearing for the ED, opposed Dham’s bail plea, terming the Amtek case one of the largest financial frauds in India. He submitted that Dham and his associates were still engaging in financial manipulations and were attempting to sell assets and influence witnesses.

Hossain argued that laundering of funds was still underway, and if Dham were released on bail, he would “systematically siphon off” concealed proceeds of crime. He stressed that granting bail in such circumstances would dilute the deterrent effect in cases involving large-scale economic offences.

Senior Advocate Vikas Pahwa, representing Dham, countered these submissions by invoking the constitutional right to a speedy trial under Article 21 of the Constitution. He argued that prolonged incarceration without any meaningful progress in trial proceedings amounted to a violation of Dham’s fundamental rights.

He further submitted that the twin conditions for bail under the Prevention of Money Laundering Act (PMLA) could not override constitutional guarantees of personal liberty. Emphasising that Dham had already been in custody for over a year and was suffering from medical ailments, Pahwa contended that bail ought to be granted, particularly in light of Supreme Court precedents mandating timely trials.

The High Court, however, was not persuaded. This was not the first time Dham’s plea for release had been rejected.

On May 30, 2025, the Court had refused him interim bail, holding that the gravity of the allegations and the magnitude of the alleged proceeds of crime made interim relief untenable. At that time too, the ED had stressed that the alleged laundering activities ran into several thousand crores and that releasing Dham would seriously undermine the ongoing investigation.

The origins of the case lie in complaints filed in December 2022 by IDBI Bank and Bank of Maharashtra against certain Amtek Group companies.

Based on these complaints, the Central Bureau of Investigation registered multiple FIRs alleging serious financial irregularities. Subsequently, while hearing a Public Interest Litigation alleging corporate fraud, the Supreme Court directed the ED to probe possible money laundering under the PMLA.

The ED’s investigation expanded to cover what it described as a Rs. 20,000 crore bank fraud involving Amtek Group entities. Raids were carried out at over 35 locations across Delhi, NCR and Maharashtra, leading to the recovery of incriminating documents and electronic data.

Dham was arrested in July 2024 pursuant to these proceedings.

The present case reflects a broader judicial approach towards bail in large-scale economic offences. Courts have consistently underscored that such cases, unlike ordinary criminal matters, involve systemic repercussions, including harm to public financial institutions and erosion of trust in the banking sector. The ED is expected to file further charge sheets, and the trial court will now scrutinise the financial records, electronic trails, and witness testimonies forming part of the agency’s case.

Case Title: Arvind Dham v ED

Date: 19 August 2025

Bench: Justice Ravinder Dudeja