Finshots Daily Amtek Auto’s ₹27,000 crore bank loan fraud
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Feb 27, 2025 Dive into the gripping tale of Arvind Dham, the mastermind behind a colossal bank fraud involving thousands of crores. Discover the rise and catastrophic fall of Amtek Auto, showcasing the dangers of unchecked ambition. Explore the failure of regulatory bodies to curb corporate misconduct, and witness the fallout from this cautionary saga of greed.
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Amtek Auto's Rise
- Arvind Dham, from a construction family, founded Amtek Auto, supplying auto parts.
- It thrived after securing contracts from Maruti, Tata Motors, and Ford Fiat, particularly post-liberalization.
Debt-Fueled Growth
- Amtek Auto's acquisitions, worth 500-700 crore rupees, were funded by debt, not profits.
- Banks readily provided loans, believing Amtek was too big to fail.
Delayed Default Recognition
- By 2015, Amtek's debt quadrupled to ₹14,200 crore, and defaults began.
- Banks delayed flagging defaults as NPAs to avoid impacting their balance sheets.