The Supreme Court of India has directed the Enforcement Directorate (ED) to initiate a comprehensive investigation into allegations of banking fraud against Amtek Auto Limited, a prominent automotive company. 

With the potential fraud amounting to a staggering Rs 27,000 crore, the court deemed it imperative to delve deeper into the matter and ensure that justice prevails.

A bench comprising Justices BR Gavai and Sandeep Mehta issued the directive in response to a petition highlighting the gravity of the situation. The petition called for a thorough examination of Amtek Auto’s erstwhile promoters, key beneficiaries, directors, benamidars, and bankers, shedding light on the intricate web of financial malpractice allegedly orchestrated by the company.

The case had already been under investigation by both the Central Bureau of Investigation (CBI) and the Serious Fraud Investigation Office (SFIO). However, considering the magnitude of the alleged fraud and the involvement of public funds, the Supreme Court deemed it necessary to bring in the Enforcement Directorate to conduct a parallel probe.

The decision to involve the ED stemmed from the complexities inherent in the case. Reports indicated that Amtek Auto Group had established a labyrinth of over 500 companies, appointed dummy directors in related entities, and misrepresented financial records. Furthermore, evidence suggested the diversion and siphoning off of loans through various means, including land deals and real estate projects.

The court expressed concern over the possibility of large-scale money laundering and undue benefits being conferred upon the family members and close associates of the company's directors. It noted the urgency of recovering public funds procured from Public Sector Banks and ensuring that those responsible for the alleged fraud are held accountable.

While acknowledging the ongoing investigations by the CBI and SFIO, the court emphasized the need for swift and thorough action. It noted that the SFIO’s investigation had made limited progress, while the CBI's efforts were yet to gain momentum.

The court's decision to involve the Enforcement Directorate underscores its commitment to upholding the rule of law and safeguarding the interests of the public. By directing an exhaustive investigation into the allegations against Amtek Auto Limited, the Supreme Court aims to ensure transparency, accountability, and the swift recovery of misappropriated funds.