Volkswagen Dealership Rocked by ₹87 Lakh Fraud
• Spare Parts Scam Busted in Ahmedabad
• Auto Fraud Uncovered at Automark Motors
Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 9322755098
Sprouts News Exclusive
Contact: +91 9322755098
Automark Motors Limited, an authorised Volkswagen dealership in Ahmedabad, has filed an FIR alleging a ₹87.54 lakh fraud by seven employees who tampered with and misappropriated vehicle parts between 2022 and 2024. The scam was uncovered during an internal audit. The Sprouts News Investigation Team (SIT) is probing lapses in inventory control and corporate accountability.
Contents
Volkswagen Dealership Rocked by ₹87 Lakh Fraud• Spare Parts Scam Busted in Ahmedabad• Auto Fraud Uncovered at Automark MotorsInventory Scam Uncovered in Volkswagen Dealership AuditSeven Employees Named in FIR; Investigation UnderwaySprouts SIT Probes Lapses in Internal Controls and Corporate GovernanceAlso Read: MahaRERA Involved in Ambernath Scam: Judicial Probe Demanded.Corporate Fraud Highlights Wider Issues in Auto Dealership OversightWhat Lies Ahead
In a startling case of internal fraud, the CEO of Automark Motors Limited, an authorised Volkswagen and Skoda dealership in Ahmedabad, has filed a police complaint alleging a systematic inventory scam carried out by a group of employees. The alleged fraud, which spanned nearly two years between June 2022 and April 2024, has resulted in a reported financial loss of ₹87.54 lakh.
The complaint, lodged by CEO Manjeet Sawant with Sarkhej Police Station, accuses seven former and current employees of conspiring to tamper with vehicle spare parts, misappropriate stock, and manipulate inventory records. The alleged discrepancies were uncovered during an internal audit conducted earlier this year.
Inventory Scam Uncovered in Volkswagen Dealership Audit
According to the FIR, a comprehensive wall-to-wall audit conducted at Automark Motors’ spare parts warehouse in April 2024 revealed a stock shortfall worth ₹54.40 lakh, and an additional ₹33.13 lakh worth of parts were found to be damaged or tampered with. The total loss was pegged at ₹87.54 lakh.
The dealership, authorised by Skoda Auto Volkswagen India Pvt Ltd, discovered that genuine spare parts had been systematically replaced with older or faulty components. The Sprouts News Investigation Team (SIT) has learned that the manipulation of records was allegedly carried out with the intent to conceal these thefts over time.
The accused allegedly operated across multiple branches, including Maninagar, Bopal, Sarkhej, Ellisbridge, and Sanand. Their coordinated efforts went undetected until a whistleblower from within the store department flagged unusual activity earlier this year.
Seven Employees Named in FIR; Investigation Underway
The FIR, registered under relevant sections of the Indian Penal Code (IPC), names the following individuals:
•Calvin Vipin, former store manager, Maninagar East
•Pratik Jayprakash Sharma, service head, Bopal
•Ruchir Shah, store department, Ellisbridge
•Ashif Ahmedmian Syed, store department, Sarkhej
•Vipul Singh Chauhan, store department, Sanathal
•Prakash Kumar Jhala, new car department, Bandarkha
•Sanjay Thakor, new car department, Sanand
In the complaint, CEO Sawant detailed how these individuals allegedly exploited access to high-value spare parts, falsified logs, and bypassed internal controls. The scam came to light following suspicious findings reported by storekeeper Rajendrabhai Parmar, with corroboration from two other staffers—Anil Rathod and Bhavesh Prajapati.
In addition to the FIR, a public complaint was filed under Section 176 of the Indian Civil Protection Act, 2023. After review and approval from the Ahmedabad Commissioner of Police, a formal criminal investigation was launched.
Sprouts SIT Probes Lapses in Internal Controls and Corporate Governance
Sources from the Sprouts News Investigation Team (SIT) indicate that investigators are examining whether the dealership’s internal control systems and audits had critical gaps that allowed such long-term embezzlement to occur unnoticed. The firm is now conducting a forensic audit to determine if more employees were involved or if similar fraud occurred at other branch locations.
As of now, no arrests have been made, but the Sarkhej police are collecting vital evidence including CCTV footage, inventory software logs, and email trails. All accused are expected to be summoned for interrogation in the coming days.
A senior official from Skoda Auto Volkswagen India Pvt Ltd, when contacted by Sprouts, said they were aware of the matter and are “closely monitoring the investigation for necessary corporate action.”
Also Read: MahaRERA Involved in Ambernath Scam: Judicial Probe Demanded.
Corporate Fraud Highlights Wider Issues in Auto Dealership Oversight
This case underscores growing concerns over employee-led fraud in India’s automotive sector, where high-value spare parts and limited oversight create fertile ground for internal theft. Sprouts News Investigation Team (SIT) has previously reported on similar incidents at dealerships in Maharashtra and Gujarat, where weak controls and delayed audits have enabled sustained financial fraud.
Industry experts suggest that the Volkswagen-Ahmedabad fraud could become a case study in dealership risk management, pushing automobile companies to introduce stronger compliance frameworks and regular third-party audits.
What Lies Ahead
Automark Motors Limited has reportedly initiated internal disciplinary proceedings and filed an insurance claim to recover part of the loss. Meanwhile, affected branches are undergoing enhanced surveillance, and Skoda-Volkswagen India may initiate its own compliance checks.
The outcome of this case could shape corporate fraud detection strategies in India’s growing dealership network. Until then, Automark’s financial recovery and reputational restoration hang in the balance.
