Four 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 Insolvency and Bankruptcy Code, 2016.
The modus operandi is simple. A company will submit the Resolution 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 liquidation value to habitual defaulters. As a result, the creditors have to take huge haircut.
