The petitioner, through advocate Jai Anant Dehadrai, sought an investigation against Amtek Auto’s erstwhile promoters, key beneficiaries, directors, benamidars and bankers.
The Central Bureau of Investigation (CBI) submitted before the Supreme Court that IDBI Bank has declared as fraud the former promoters/directors of Amtek Auto Ltd, who have been charged with siphoning off over Rs 12,000 crores in the name of loans from different banks. The bank, however, has not declared the company a fraud.
The CBI made the submissions through an affidavit filed before the Supreme Court after it was issued a notice in September by a bench led by Chief Justice of India UU Lalit to respond to a petition pertaining to the case.
The petitioner, through advocate Jai Anant Dehadrai, sought an investigation against Amtek Auto’s erstwhile promoters, key beneficiaries, directors, benamidars and bankers.
The CBI stated that it approached 19 banks which extended credit facilities to Amtek, seeking the status of declaration of Amtek’s account as fraud and filing complaints with the central probe agency in case the firm’s account is declared as fraud.
Out of the 19 banks CBI approached, only five banks–IDBI Bank, Bank of Maharashtra, PNB, SBI and IFCI Ltd–responded. The four respondent banks, barring IDBI, did not declare Amtek’s account as fraudulent. Fourteen other banks are yet to respond.
What Was IDBI Bank’s Response?
According to CBI’s affidavit, IDBI Bank informed that it’s in the process of finalising and filing a complaint against former promoter /directors of the company.
However, Amtek Auto Ltd has since been resolved under Insolvency and Bankruptcy Code and Deccan Value Investor has since implemented the Resolution Plan and taken over the management of Amtek Auto Ltd. Hence, the company has not been declared as a fraud.
The CBI has now asked IDBI Bank to revert with essential facts in its complaint for the probe agency to be able to register an FIR.
Why Was Information Sought By CBI From Banks?
The CBI acted pursuant to a complaint which alleged Amtek Auto promoters fraudulently siphoned off crores, availed through credit facilities from a consortium of banks, by routing through 127 related companies/firms/parties.
After the complaint was analysed by CBI, it observed that the complaint was lacking certain relevant and specific information relating to various aspects of credit facilities extended by the various banks to Amtek Auto Ltd.
These details were necessarily required by CBI to finalize the verification and take appropriate action.
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