Supreme Court grants bail to former Amtek Group promoter in PMLA case

The Supreme Court on Tuesday granted bail to former Amtek Group promoter Arvind Dham in a money laundering case arising from an alleged multi-crore bank fraud, holding that prolonged incarceration without commencement of trial violates the fundamental right to speedy trial under Article 21 of the Constitution, even in cases involving serious economic offences.

A bench of justices Sanjay Kumar and Alok Aradhe set aside the August 2025 order of the Delhi High Court, which had refused to release Dham on bail on the ground that his release could jeopardise the trial, undermine public confidence in the justice system, and erode the fabric of economic governance.

While acknowledging that courts must consider the gravity of the offence while deciding bail pleas, the Supreme Court held that economic offences cannot be treated as a homogeneous class warranting blanket denial of bail. “All economic offences cannot be classified into one group… they may differ from one case to another,” held the bench, adding that the nature of the offence does not eclipse the constitutional guarantee of a speedy trial.

The court underlined that if the State or prosecuting agency lacks the wherewithal to ensure a timely trial, it cannot oppose bail solely on the ground of seriousness of the offence. Citing its earlier rulings, the bench reiterated that prolonged pre-trial incarceration converts detention into punishment, which is impermissible under Article 21.

Dham has been in custody for about 16 months and 20 days. The court noted that the maximum sentence prescribed for the offence under the Prevention of Money Laundering Act (PMLA) is seven years, and that several benches of the Supreme Court have granted bail in cases involving incarceration ranging from three to 17 months. It also took note of the fact that the investigation against Dham had concluded, documentary evidence had already been seized, and there was no realistic likelihood of the trial commencing in the near future.

The court also recorded that Dham had cooperated with the investigation even prior to his arrest, joining the probe on multiple occasions in June and July 2024. Of the 28 individuals named in the case, he was the only person arrested. The special court had also recorded the Enforcement Directorate’s submission that investigation qua Dham stood completed.

The bench pointed out that cognisance had not yet been taken on the prosecution complaint and the matter was still at the stage of scrutiny of documents. With 210 witnesses cited by the prosecution and no progress despite an application by the ED seeking day-to-day hearing, the court held that continued incarceration in such circumstances was unjustified, particularly when the evidence was primarily documentary in nature and already in the agency’s custody.

Setting aside the Delhi High Court’s judgment dated August 19, 2025, the Supreme Court directed that Dham be released on bail during the pendency of trial in the two ECIRs registered against him. The terms and conditions of bail will be fixed by the trial court. The court also directed Dham to provide a mobile number to the ED to ascertain his whereabouts, surrender his passport, and not leave the country without prior permission of the trial court.

The money laundering proceedings stem from a 2022 FIR registered by the Central Bureau of Investigation on complaints by IDBI Bank and Bank of Maharashtra, which accused Amtek Group companies of defaulting on massive loans through fraudulent means involving cheating and criminal breach of trust. Acting on directions of the Supreme Court on February 27, 2024, the Enforcement Directorate registered a case under the PMLA in 2024.

According to the ED, Dham was the ultimate beneficial owner of the alleged fraud, which was executed through manipulation of financial records, overstating assets and profits by over ₹15,000 crore, creating fictitious sales and purchases, floating more than 500 shell companies, and installing dummy directors to siphon off public funds. He was arrested by the ED in July 2024.