VTB seeks nod to bid for Essar

An indirectly held subsidiary of VTB Group has moved the Supreme Court seeking permission to bid for assets of beleaguered Essar Steel.

Cyprus-based Crinium Bay Holdings, in its petition, claims that even after the Oct 4 order of the top court that disqualified VTB Group-backed Numetal’s resolution plan for Essar Steel, the group in itself remains eligible to bid.

On October 4, Numetal's bid was rejected on the ground that Rewant Ruia, the son of Essar Steel's promoter Ravi Ruia, is closely associated with the resolution plan submitted by Numetal.

Referring to Numetal's disqualification, the petition said Numetal was found to be ineligible for reasons, "which are extraneous to VTB, and hence, it is believed that VTB should not suffer any disqualification".

Crinium also said "in interest of justice" it should be allowed to submit a fresh resolution plan "whether in its independent capacity or in conjunction with a suitable partner with the right experience and capability to run a steel plant of this magnitude."

On October 4, the top court had rejected bids by both ArcelorMittal India and Numetal, but allowed both the companies to submit fresh resolution plans for assets of Essar Steel.