BUSINESS
Petition to NCLAT that Lakshmi Mittal was suppressing information about his shareholding in his brothers' companies
Ruias, promoters of Essar Steel, want the ArcelorMittal takeover of the ailing company to be rejected.
The promoters came up with fresh allegations that Lakshmi Mittal was suppressing information about his shareholding in his brothers' companies, which had defaulted on its repayments banks.
Under the Insolvency and Bankruptcy Code 2016, a promoter or a shareholder of a defaulting company cannot take over another company unless all the dues are repaid.
ArcelorMittal in a statement said that these are frivolous attempts to deflect attention from the fact that the committee of creditors (CoC) has shortlisted ArcelorMittal as the most credible owner of Essar Steel.
In a petition filed on behalf of Prashant Ruia, director, Essar Steel in the National Company Law Appellate Tribunal (NCLAT), Ruias have pleaded for rejection of ArcelorMittal's bid to take over their steel plant at Hazira, in a last ditch effort to retain it. This is India's largest single-location flat steel plant. Built with a total investment of over Rs 30,000 crore, it has a steel-making capacity of 10 million tonne per annum.
In a long winded bankruptcy proceedings, which took over 600 days to decide the fate of the company, the bankers are losing out on the repayments on the loan of Rs 47,000 crore. The fresh set of allegations will further delay the resolution process.
Arcelor Mittal was selected as the highest bidder for Essar Steel after it submitted a resolution plan with a commitment of an upfront payment of Rs 42,000 crore. After this offer was approved by the committee of creditors (CoC) Essar Steel Asia Holdings Ltd (ESAHL), the largest shareholder of Essar Steel made an offer of Rs 54,389 crore on October 25, 2018 improving the offer of ArcelorMittal consortium. But the court subsequently asked ESAHL to clear all the stressed outstanding dues of all its group companies before being eligible to retain the company.
Prashant Ruia in the petition told the NCLAT that Lakshmi Mittal and ArcelorMittal India had conspired to suppress vital facts and misled the court and the CoC. They alleged that Lakshmi Mittal as late as September 2018 was a co-promoter in Navodaya Consultants along with his brothers Promod Mittal and Vinod Mittal. Navodaya was the promoter of GPI Textiles, Balasore Alloys and Gontermann Piepers, companies that had defaulted to banks. This is, they alleged, was in contradiction to a sworn affidavit file by Sanjay Sharma on behalf of Lakshmi Mittal on October 17, 2018, which said that there is no business association between Lakshmi Mittal and Arecelor and his brothers.
Following the Supreme Court judgement of October 2018, ArcelorMittal had paid Rs 7,500 crore to lenders of Uttam Galva and KSS Petron to become eligible to bid for Essar Steel. Lakshmi Mittal was a shareholder in both these companies. Under the IBC, it is mandatory that the promoter taking over a company should not have any non-performing assets in any of the companies he owns or has a shareholding.
'Allegations regarding ArcelorMittal's ineligibility on account of companies associated with Mr. Mittal's brothers have already been raised by the promoters of the Essar Steel before the Supreme Court, which refused to entertain such assertion," ArcelorMittal said in a statement. It added that the latest allegations of Essar Steel promoters are yet another attempt to subvert the directions of the Supreme Court and IBC, a critical government legislation.
DNA TV Show: How did Donald Trump win US elections despite his several controversies?
Sunil Mittal's Airtel joins hands with Indian Army, becomes only private company to...
Shah Rukh Khan's Mannat to Amitabh Bachchan's Jalsa: 5 most expensive celebrity homes in India
IPL 2025 auction: 42-year-old England legend registers for first time, his base price is...
Stranger Things season 5 teaser reveals episode titles, release date confirmed as...
Singer Rahul Vaidya buys 3110 sq ft luxury apartment worth Rs 90000000, it is located in...
Nimrat Kaur asks Abhishek Bachchan ‘would you distract Aaradhya’, he praises Aishwarya Rai in reply
JEE Advanced 2025: Candidates now allowed to give 3 attempts, check details inside
Watch: MS Dhoni's video of playing golf with Donald Trump goes viral after US Polls
Viral: Italy's Lake Como's 'fresh air' can being sold for Rs 907, details inside
Ranji Trophy: Jalaj Saxena scripts history, becomes first cricketer to achieve massive feat
Gautam Adani congratulates Donald Trump on winning US elections, says, 'If there is one person...'
Meet Usha Chilukuri, who is set to become first Indian-origin second lady of US, she is wife of...
Delhi NCR: Traffic advisory issued in Ghaziabad ahead of Chhath Puja 2024, check routes to avoid
ICC Test Rankings: Rishabh Pant breaks into top 10; Virat Kohli, Rohit Sharma suffer massive loss
NASA's Sunita Williams witnesses 16 sunrises, sunsets daily in space, here’s how
'India will…': Ricky Ponting makes BOLD prediction for Border-Gavaskar Trophy
From DU to Tesla: Meet man who works for Elon Musk, manages his company's...
Essence of Leadership: Insights from Ankur Saini
Who is Thomas Draca? First Italian player to register for IPL 2025 mega auction
IPL 2025 mega auction: Full list of players with Rs 2 crore base price
Meet man who quit Paytm after Rs 2048 crore deal with Deepinder Goyal's Zomato, he is...
Anushka Sharma can't stop laughing seeing Virat Kohli's funny move in unseen viral video - Watch
SA vs IND: Arshdeep Singh aims to surpass Bhuvneshwar Kumar’s all-time T20I record
Donald Trump reclaims US presidency, netizens win hearts with meme-fest
'Everyone will come to know...': LoP Rahul Gandhi's BIG statement on caste census in Nagpur
Thama: Ayushmann Khurrana reveals all about 'bloody love story', says it is....
'History’s greatest comeback': Israel PM Netanyahu congratulates Donald Trump on US Election victory
US Election Results LIVE: Donald Trump's victory speech; WATCH HERE
Arjun Kapoor hits back at haters post Singham Again success: 'To everyone who...'
'Let's work for global peace': PM Modi congratulates 'friend' Donald Trump on winning US election
Swiggy's next BIG step, set to challenge Mukesh Ambani ahead of IPO, collects Rs...
Amid divorce rumours, Abhishek Bachchan and Aishwarya Rai set to reunite for...
J-K Assembly passes resolution seeking restoration of special status of erstwhile state
CAT Admit Card 2024 RELEASED: Step-by-step guide to download from iimcat.ac.in
Kiki Hakansson, the first ever Miss World, passes away at 95
This company surpasses Apple as world's biggest company, it's market cap is Rs...
IPL 2025: Mitchell Starc breaks his silence on not being retained by KKR, says, 'I still have not…'
J-K: Encounter breaks out between security forces, terrorists in Kupwara
‘Our relationship with US…’: EAM S Jaishankar on US Presidential Election 2024 Results
Delhi-NCR AQI: No relief from pollution, Delhi air quality remains 'very poor'
Dev Diwali 2024: Dates, significance, how to celebrate, everything you need to know
Israel PM Netanyahu fires Defence Minister Yoav Gallant over 'lack of trust'
Swiggy IPO opens today, aims to garner Rs 11327 crore: Check price band, lot size and more