New Delhi, May 4 (IANS) The Insolvency and Bankruptcy Board of India (IBBI) has filed a criminal complaint against UK-based Liberty House Group for withdrawing after successfully bidding for Amtek Auto.
The IBBI, the regulator for overseeing insolvency proceedings in the country, filed the complaint on Friday.
Liberty House had emerged as the highest bidder for Amtek Auto but soon backed out citing inadequate information being provided, which was allowed by the National Company Law Tribunal (NCLT) after imposing a cost.
But the lenders moved the NCLT, alleging that Liberty House wilfully withdrew. The tribunal in agreement with them said the board may move against Liberty House as per the regulations laid down under the bankruptcy code.
Section 74(3) of the Insolvency and Bankruptcy Code (IBC) says that any party that violates conditions laid under the resolution plan is liable for prosecution and may face a prison term of up to five years with a penalty of up to Rs 1 crore.