Banks may tag Amtek Auto as fraud account after MCA finds fund diversion

The Ministry sought to recover funds from former promoters by moving the Chandigarh bankruptcy court last month

The Indian lenders, who have Rs 25,000-crore exposure to Amtek Auto group companies, are looking at the option to classify the accounts as “fraud” after the Ministry of Corporate Affairs (MCA) sought to recover funds from the former promoters by moving the Chandigarh bankruptcy court last month.

The National Company Law Tribunal, Chandigarh, will hear the petition filed by the MCA on March 31, which seeks to freeze assets of Amtek Auto promoters.

A banking source said after the MCA has taken action to freeze the promoter’s assets in the courts citing fraud, they will also take steps against the companies, though