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MCA moves NCLT to recover Rs.2,320-Cr from Amtek Auto

Business Line  

The Ministry of Corporate Affairs (MCA) has asked the Serious Fraud Investigation Office (SFIO) to investigate the books and dealings of Amtek Auto with its group companies. The MCA decision was conveyed to NCLT Chandigarh, demanding that the former promoters of Amtek Auto return INR 2,320 crore syphoned off from the company. The MCA said the amount was allegedly diverted by the former promoters to personal entities by way of loans secured through various banks. The SFIO investigation is also likely to examine if there were short-comings in implementing the findings of EY's forensic audit. Last September, the MCA had approached the Mumbai Bench of the NCLT against the promoters and other former directors of Metalyst Forgings, a listed subsidiary of Amtek Auto, seeking an order to attach assets.