ED files supplementary complaint in Amtek Auto fraud case

The Directorate of Enforcement (ED) in Gurugram has filed a supplementary prosecution complaint on 1 August 2025, against multiple individuals and entities connected to the bank fraud case involving Amtek Auto Limited and its group companies.

The Special PMLA Court at Rouse Avenue, New Delhi, has issued notices to 56 accused, including promoters, family members, chartered accountants, bankers, resolution professionals, and stock market operators. The court’s action follows an ED investigation initiated after a Supreme Court directive on 27 February 2024, which addressed allegations of large-scale money laundering involving loans from public sector banks.

Key Allegations in the Complaint:

• Fraudulent Audit Reports: The complaint highlights the role of Chartered Accountants who allegedly filed fraudulent audit reports, covering up fictitious inflation of fixed assets and failing to flag criminal misappropriation of funds.
• Banking Misconduct: Bankers are accused of sanctioning loans for “undue benefits” and “evergreening” loans without proper due diligence or adhering to RBI guidelines. This practice led to a substantial increase in non-performing assets (NPAs) for the banks.
• Stock Market Manipulation: The ED’s investigation also uncovered the involvement of Mumbai-based stock market operators who were allegedly hired by the Amtek group to manipulate the share price of Castex Technologies Limited. The group is accused of using siphoned-off bank loan funds to pay these operators, defrauding Foreign Portfolio Investors of nearly Rs 1,000 Crore.
• Misuse of IBC: The complaint also alleges that promoters misused the provisions of the Insolvency and Bankruptcy Code (IBC) for their own benefit by alienating assets through undervalued transfers to benami entities before the insolvency proceedings began. The role of Resolution Professionals who allegedly violated IBC provisions is also covered.

The ED’s ongoing investigation revealed that a total of 15 group companies were taken to the NCLT, and their cases were ultimately resolved with an average deep haircut of 81%, meaning creditors on average realized only 19% of their total claims. The filing of this supplementary complaint marks another step in the extensive legal proceedings against the Amtek group.

Also See: ED attaches assets worth ₹588 crore in Amtek Auto bank fraud case; total attachments cross ₹6,200 crore