Mumbai: The Chandigarh bench of the National Company Law Tribunal (NCLT) has approved the bid submitted by Liberty House for Amtek Auto.

Specific details of the bid are yet to be ascertained, but it is believed that banks have taken a hair-cut of around 70 per cent. While the auto component maker owes over Rs 12,000 crore to financial creditors, earlier reports suggested Liberty had made a bid of Rs 4,000 crore.

For Liberty House, which is part of Sanjeev Gupta's global GFG Alliance, Amtek Auto is another asset under its fold. Recently, the Calcutta bench of the NCLT had approved its resolution plan for steel maker Adhunik Metals.

Amtek Auto was one of the 12 companies that were referred by the Reserve Bank of India (RBI) for resolution under the Insolvency and Bankruptcy Code (IBC) in June 2017. While the US-based hedge fund Deccan Value Investments had also bid for the firm in March this year, Liberty House's resolution plan was passed by lenders with over 94 per cent majority.

A spokesperson for Liberty House, while confirming that the firm had won the NCLT approval, said it was now set for a major growth in the automotive sector following the acquisition.

"It is a very significant moment for Liberty House and GFG alliance. We are very excited about this opportunity to restore a great Indian business to its rightful position and add a major new asset portfolio to our international network,'' a statement said.

Amtek Auto is one of the largest integrated auto component manufacturers with operations across forging, iron and aluminium casting, machining and sub-assemblies. The steel and aluminium parts made by the company include connecting rods, crankshafts, flywheels, engine blocks, cylinder heads and various engine housing and drive train components.

Liberty House had earlier said that if it was successful in acquiring Amtek's operations, GFG would apply its "Greenmetal" vision in India and develop a full end-to-end enterprise ranging from renewable energy generation and metal-making right through to finished engineering products.

As part of this integrated strategy, the group has been pursuing other assets in India.