The dust is yet to settle on the alleged Rs 22,000 crore loan default scam of ABG Shipyard, but another loan default case has surfaced. Only, bigger. Amtek Auto, once a leading auto-component player, and its group companies have defaulted on borrowings of over Rs 25,000 crore, sources told CNBC-TV18.

Amtek Auto has a borrowing of Rs 12,600 crore on which the firm has defaulted, according to sources. Its group companies — Castex Tech, Metalyst Forging, and Amtek Ring Gear — have defaulted on additional borrowings of Rs 12,500 crore.

CNBC TV-18 has reviewed the forensic audit report of Amtek Auto. The audit was conducted by EY and the review period for the same was July 2015 to July 2017. Amtek Auto was among the 12 major companies, which were identified by the Reserve Bank of India (RBI) for bankruptcy proceedings. The insolvency proceedings against Amtek Auto started in July 2017.

The group has been facing allegations of bagging huge loan amounts from various banks and then routing the money to shell companies and personal entities of the office bearers of the group.

The forensic audit report mentioned that the public domain searches on email IDs, addresses, directorships of the related parties disclosed in the financial statements indicated that these additional parties were potentially related to Amtek.

This was done in order to establish the connection between the potentially related parties receiving loan amounts and the office bearers of the group. The group promoters were accused of using the potentially related parties to route the loan amounts.

No interest income was recorded against most of these loans. The auditors also looked into the potentially related parties and found that there were no purchase/sale transactions of most of the potentially related parties, which received the loan amount.

The report added that Amtek didn't provide underlying documents for loans, which were granted to its potentially related parties by Amtek. "No underlying supporting documents were provided by Amtek auto for loans and advances," the forensic audit report said.

The company was also accused of showing inflated asset value to its creditors.

The report also mentioned that the company had raised debit notes on the original equipment manufacturer (OEM) customers on account of the development of designs and prototypes for new products and their variants. But these debit notes couldn't be recovered as the customers hadn't accounted for these bills.

The corporate affairs ministry was seeking recovery of Rs 2,320 crore from the promoters of the group. The ministry also asked the Serious Fraud and Investigations Office (SFIO) to conduct a probe in the loan defaulting case of Amtek Auto.

The corporate affairs ministry has sought freezing of movable and immovable assets of managing director Arvind Dham, directors Gautam Malhotra, Deshpal Singh Malik, John Ernest Flintham, chief financial officer Vinod Kumar Upal, and company secretary Rajeev Raj Kumar.