Numetal: Was ‘ineligibility’ of Mittal brothers considered?

Numetal, a bidder for Essar Steel, has written to Essar Steel’s resolution professional (RP) and State Bank of India (part of the committee of creditors), seeking to know whether the “ineligibility” of ArcelorMittal promoter L N Mittal’s brothers — Pramod and Vinod Mittal — had been taken into account in deciding the eligibility of the Luxembourgbased company.

Numetal has sought the information preferably by Tuesday, when its application against the National Company Law Appellate Tribunal (NCLAT) order is likely to be taken up in the Supreme Court.

The letter mentions facts that were placed before the National Company Law Tribunal (NCLT) and NCLAT to establish that ArcelorMittal India Private Ltd (AM) was disqualified under Section 29A of the Insolvency and Bankruptcy Code by virtue of Pramod Mittal and or Vinod Mittal facing ineligibility by being promoters of Gontermann-Peipers and Ispat Profiles India Ltd. Other companies mentioned in the letter in the same vein were Chhattisgarh Energy Ltd, Balasore Alloys Limited, GPI Textiles.

“We request you to confirm whether the abovementioned facts have been verified by you to determine the eligibility of ArcelorMittal India Private Limited as a resolution applicant under Section 29A,” the letter said.

An ArcelorMittal spokesperson said, “There is absolutely no connection between ArcelorMittal’s eligibility and the businesses of Mr Mittal’s brothers. As previously acknowledged by the resolution professional, this has no relevance to the eligibility or ability of ArcelorMittal to participate in the resolution process for Essar Steel. It is in fact a tiresome and trivial attempt to distract from the central fact that ArcelorMittal is the most credible owner of Essar Steel and that we have the most compelling offer on the table for all stakeholders, particularly financial creditors.”

ArcelorMittal’s application for a stay on the NCLAT order mentioned that an affidavit had been submitted on the issue of Ispat Profiles to the committee of creditors on May 15.