Amtek Auto creditors angry at Liberty Group's Sanjiv Gupta

The Mint said that when the insolvency court of appeal last week ordered the liquidation of the bankrupt Amtek Auto Ltd, creditors lost hope of recovering much of the Rs 12,603 ​​crore fees that the once-thriving auto parts manufacturer had to pay.

Many of Amtek's creditors are now channeling their anger at Mr Sanjiev Gupta, chairman of London-based iron and steel company Liberty House, which, after winning a bid to buy Amtek Auto, backed sharply at the last minute, ending bankruptcy.

A senior bank manager who served on the creditors' committee of two of these assets said: “This was a colossal loss for creditors. We want Liberty House to be blacklisted. In the case of Adhunik Metaliks, we will embezzle Rs 55 crores that were paid to us by Liberty House.

More than a year after the winner of the tender was announced, Liberty House has not paid the Rs.4,400 that it offered to acquire Amtek. This isn't the first time Liberty House has stumbled after placing a winning bet. Lenders say it was a model. He turned down on two previous occasions, one after becoming the main contender for ABG Shipyard, and the other in the same way in the case of Adhunik Metaliks Ltd.

In May, the Insolvency and Insolvency Board of India, which regulates bankruptcy proceedings, accused Liberty House and its senior executives of willfully violating the terms of Amtek Auto's permitting plan.