Congress demands CBI probe into Amtek group insolvency

The Congress on Sunday accused the central government of sheltering promoters of certain companies declaring insolvency through the Insolvency and Bankruptcy Board of India, and demanded a CBI probe into the insolvency of Amtek group.
 

Addressing a press conference, Congress leader Sanjay Nirupam said the government must order a probe into the findings of Ernst and Young's audit report into the insolvency of Amtek Auto.
 

The report states that “Amtek group has carried out preferential transactions, transactions defrauding creditors, and it siphoned off more than 70 per cent of its assets and funds to 129 shell companies,” Nirupam said.
 

"The Amtek group of companies took a loan of Rs 25,000 crore from Indian banks. The company was eventually sold for Rs 1,500 crore. Its promoters wrote off assets worth Rs 7,500 crore, and Rs 12,500 crore funds were siphoned off through shell companies," he said, citing EY report.
 

"The findings of the EY report are there in front of us but no action has been taken, that is our issue. Why the promoters of the company are being shielded? What connection do they have with the government?" he asked.
 

“No one but the Central Bureau of Investigation (CBI) can probe this matter because it seems Ministry of Corporate Affairs is ‘hand in glove', Serious Fraud Investigation Office is short staffed, and National Company Law Tribunal (NCLT) also seems to be a part of this ‘scam'," Nirupam alleged.
 

The “swindling” by the promoters of Amtek must be probed, he demanded.
 

Citing official figures, Nirupam said that in the last five years, six lakh crore of banks' money has been lost.
 

Modi government must come out with a white paper on all such insolvency cases, Nirupam said, accusing the government of shielding promoters of several firms that have filed for insolvency recently.
 

Addressing the press conference along with Nirupam, Congress spokesperson Pawan Khera alleged that in the name of resolving the insolvency cases of the companies, institutional corruption is going on.
 

"Nirmala Sitharaman ji always says these companies took loans during the time of the UPA. But the loan defaults and the loss of money is going on under the Modi government," Nirupam said.
 

He also compared the Amtek case with that of ABG Shipyard.
 

In February, the CBI booked ABG Shipyard Limited, its former chairman and managing director Rishi Kamlesh Agarwal, and others, for allegedly cheating a consortium of lenders led by the ICICI Bank in the biggest such bank fraud.
 

The Congress had questioned why the government “took five years” after the liquidation proceedings of ABG Shipyard to lodge an FIR in connection with the alleged duping of 28 banks.