Another default has come to the fore after ABG Shipyard’s Rs 22,000 crore loan default scam. It is associated with the country’s largest auto component company and its subsidiaries. Companies in this group have defaulted on loans of more than Rs 25,000 crore. Sources have given this information to CNBC-TV18.
Group companies also defaulted
Sources said that Amtek Auto had taken a loan of Rs 12,600 crore, on which it defaulted. Its group companies had also taken an additional loan of Rs 12,500 crore. These companies could not repay the loan. These include Castex Tech, Metalist Forgings and Amtek Ring Gear.
Insolvency proceedings against Amtech started in 2017
CNBC TV-18 has seen the forensic audit report of Amtek Auto. This audit was done by EY. Its review period was from July 2015 to July 2017. Amtek Auto is among the companies that have been identified by the RBI for bankruptcy proceedings. The insolvency proceedings against Amtek Auto began in July 2017.
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loan amount was misused
Amtek Group is accused of taking large sums of money in the form of loans from several banks. After taking the loan, the company used to use the money for the personal entities of shell companies and top executives of the group. The forensic audit report states that email ids, addresses, directorships of the companies concerned and financial statements show that there were several outside parties linked to Amtek.
Amtek Group’s promoters are also accused of using outside parties for misappropriation of loan amount. Most of these loans do not show any interest income. The audit also examined outside parties, which found that most of the receiving parties did not have purchase and sale transactions.
Serious Fraud and Investigation Office (SFIO) can also investigate
The report said that Amtech did not provide the underlying documents for the loan. The company has also been accused of inflating the value of its assets to the lending banks and financial institutions. The corporate affairs ministry is trying to recover Rs 2,320 crore from the promoters of Amtek Group. The ministry has also asked the Serious Fraud and Investigation Office (SFIO) to probe the default case of Amtek Auto.
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