Amtek Group

Amtek Group Infra LIVE March 15, 2020 24 www.infralive.com F our companies of Amtek Group - Amtek Auto Ltd, Castex Technologies Ltd, Metalyst Forgings Ltd, and ARGL Ltd - promoted by Arvind Dham, with total admitted claims of Rs 24,945 crore of their financial creditors, have been sold out to certain investors at throw away prices under suspicious circumstances under the Insol- vency and Bankruptcy Code, 2016. The modus operandi is simple. A company will submit the Reso- lution Plan, emerge as the H1 Bidder, and later back out from the process on flimsy grounds. The game is then open to the H2 bidder or fresh bidding at much lower rates. In some cases, the entity is sold at below its liquida- tion value to habitual defaulters. As a result, the creditors have to take huge haircut. The company that is continu- ously committing default in the insolvency resolution processes of various companies is the Liberty House Group PTE LTD (LHG), promoted by Sanjeev Gupta, with headquarters in London and Deccan Value Investors LP (DVI). 1. Amtek Auto Ltd Total admitted claims of finan- cial creditors is Rs 12,605 crore (see table-1 at pg 26). Its liquida- tion value was determined as Rs 4,119 crore. The detailed sequence of events is explained in box-1 at pg 27 & 28. The resolution process began with NCLT having admitted the case on July 24, 2017. Initially six companies had shown interest. However, only two bids were Amtek Group r Four companies under NCLT process had Rs 24,945 crore of admitted claims payable to financial creditors r Being sold at throwaway price to questionable investors through bid sabotage and illegal price discovery Sanjeev Gupta Liberty House Group