INSUBCONTINENT EXCLUSIVE:
ETNow BureauTroubled firms Amtek Auto and Essar Steel are increasingly facing investigative heat
This time, they are in the crosshairs of the Serious Fraud Investigation Office, said government sources.
The current round of
investigation has been ordered following several complaints against them
The mandate for the SFIO is to find out if Amtek and Essar Steel turned large defaulters because of any funds misappropriation by promoters
Arrest of Bhushan Steel's former promoter Neeraj Singhal is only a pointer of things to come
It shows the Centre's resolve to stay proactive even after the defaulter is sold under the IBC (insolvency and bankruptcy code)
The Reserve Bank (RBI), on its part, has asked public sector banks to carry out forensic audit of close to 200 companies as part of its
fight against bad loans.
Upping the ante, the government may ask the SFIO to investigate the same set of 200 companies that include almost
all big NPAs (non-performing assets).
