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The Directorate of Enforcement (ED), Kolkata Zonal Office, has filed a Prosecution Complaint (PC) against M/s Amrit Feeds Ltd (AFL), its promoter Harish Bagla, and others before the Chief Judge, City Sessions Court, Kolkata on October 23, 2025, under provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The agency has also provisionally attached immovable assets worth ₹10.44 crore under a Provisional Attachment Order dated October 22, 2025. The ongoing investigation pertains to a large-scale bank fraud involving the diversion and laundering of loan funds obtained from multiple financial institutions.
SFIO Complaint and Origin of the Case
ED initiated its probe based on a Complaint (Company Case No. 04/2024, dated March 22, 2024) filed by the Serious Fraud Investigation Office (SFIO) against Amrit Feeds Ltd, its related companies, and directors/promoters for allegedly siphoning off bank funds.
According to the complaint, AFL availed loans from a consortium of banks, which later turned Non-Performing Assets (NPAs) in FY 2015–16 due to deliberate default and fund misappropriation.
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Loan Details and Default
The total defaulted loan amount stands at ₹144.68 crore, comprising:
- ₹93.62 crore (Term Loan)
- ₹51.06 crore (Cash Credit Facility)
These facilities were extended by Axis Bank, Punjab National Bank, Bank of India, and HDFC Bank.
Findings of the ED Investigation
The ED’s financial probe revealed that the loan proceeds were not utilized for the intended business purposes. Instead, funds were diverted and laundered through a web of shell entities.
These entities were allegedly used to:
- Invest in related companies,
- Purchase immovable assets in the names of connected entities, and
- Transfer funds to personal accounts of promoter Harish Bagla and his family members for personal use.
The investigation has also uncovered multiple layered transactions involving numerous intermediary companies, indicating systematic laundering of proceeds of crime (PoC) generated by Amrit Feeds Ltd.
Searches, Seizures, and Arrest
Earlier, the ED conducted search operations on August 26, September 3, and September 4, 2025, at various premises associated with AFL and its directors.
During these operations, valuables were seized and bank balances amounting to ₹5.46 crore were frozen.
Promoter and Managing Director Harish Bagla was arrested on August 26, 2025, and is currently in judicial custody.
ED’s Official Statement
In a statement, the ED said:
“The investigation has revealed that Amrit Feeds Ltd diverted bank loan funds to shell companies and related entities instead of utilizing them for the stated business objectives. The proceeds were laundered through complex financial layering to conceal their origin. This represents a serious case of corporate and banking fraud under the PMLA framework.”
Ongoing Investigation
The agency has confirmed that further investigation is in progress to trace the remaining assets, identify additional beneficiaries, and establish the complete money trail.
A forensic audit of the connected entities’ bank accounts and property transactions is also underway.
Broader Implications
The case underscores rising concerns over corporate financial misconduct and money laundering through complex corporate structures in India’s banking sector.
Experts believe the incident highlights the need for:
- Stronger due diligence during loan approvals,
- Enhanced corporate transparency, and
- Tighter financial monitoring mechanisms to curb misuse of institutional credit.
The Amrit Feeds Ltd case is yet another example of how financial fraud, layered transactions, and money laundering continue to test the resilience of India’s regulatory and banking systems.
As ED deepens its probe, the outcome is likely to set a precedent for corporate accountability under the PMLA regime.
