Earlier in October 2018, the Supreme Court had afforded one more opportunity to both ArcelorMittal and Numetal to clear the debts owned by their related parties to become eligible to bid for Essar Steel. Pursuant to the order, ArcelorMittal cleared dues worth Rs. 7,000 crore with respect to Uttam Galva and KSS Petron and succeeded as the winning resolution applicant for Essar Steel. It is now ESAHL’s claim that, those are not the only two NPAs ArcelorMittal is associated with.
ESAHL, a shareholder of Essar Steel, has contended that ArcelorMittal misled all the parties into believing that Lakshmi N Mittal had completely exited from the Indian businesses of his brothers, Pramod and Vinod Mittal, specifically their companies, Gontemann Peipers India Ltd, GPI Textiles Limited and Balasore Alloys Limited. ESAHL has further stated that these companies are presently NPAs and are held by one Navoday Consultants which had Lakshmi Mittal as a shareholder and promoter as on September 30, 2018.
ESAHL sought to rebut ArcelorMittal India’s claim that neither Lakshmi Mittal nor any company in ArcelorMittal group was a shareholder of any of the companies declared as NPAs. ESAHL relied on the averment made by the Resolution Professional for GPI Textiles before the NCLT, listing Lakshmi Mittal as a shareholder and promoter of GPI textiles
ESAHL has thus contended that ArcelorMittal “malafidely concealed” the NPA debt of these companies in order to circumvent the directions passed by the Supreme Court and avoid making for it is related parties