Corporate Grapevine

Published: Mar 15, 2022
Updated: Mar 15, 2022

Await skeletons from Amtek cupboard

After the ABG Shipyard scam, which is under investigation by the CBI, the next big scam is set to break out in Amtek Auto. As per forensic audits, the company’s promoters have siphoned off funds from all four group companies. At the time of going bankrupt, the four companies owed Rs 25,000 crore to lenders.

As per the forensic audit done by EY, one of the big four audit firms, the promoters siphoned off funds from the company. The report was sent to lenders in 2018, but since then lenders are keeping silent on the issue and have not filed a complaint with the CBI for fraud. The reason? If an independent probe is carried out, several top officials of banks will go to jail. Amtek Auto will be the next big scam to watch out for.

Interestingly, the auto component company which has defaulted on bank loans worth Rs. 25,000 crore has also defaulted on Rs. 800-crore bonds issue and the victims include JP Morgan Mutual Fund, IDBI Bank and Axis Bank among others. However, the promoters have repaid select bond holders like actress Aishwarya Rai Bachchan. Thus the company has violated the basis tenet of a bond deal of treating all lenders pari passu.