Homeinfrastructure News

    Essar Steel bidding: ArcelorMittal accuses Vedanta for environment, human rights violations

    infrastructure | IST

    Essar Steel bidding: ArcelorMittal accuses Vedanta for environment, human rights violations

    Mini

    Steel tycoon Lakshmi Mittal’s ArcelorMittal on Monday has written to debt-laden Essar Steel's resolution professional alleging environmental law and human rights violations by Anil Agarwal’s firm, Vedanta Ltd, sources privy to the developments told CNBC-TV18.

    Steel tycoon Lakshmi Mittal’s ArcelorMittal on Monday has written to debt-laden Essar Steel's resolution professional alleging environmental law and human rights violations by Anil Agarwal’s firm, Vedanta Ltd, sources privy to the developments told CNBC-TV18.
    In a six-page letter, ArcelorMittal said cornerstone of Insolvency and Bankruptcy Code (IBC) process is full and complete disclosure of facts to Committee of Creditors (CoC) and the company hoped that these facts are suitably considered for Essar Steel’s resolution.
    Essar Steel owes over Rs 45,000 crore to over 30 banks and other creditors.
    ArcelorMittal, based in Luxembourg, alleged that Vedanta has committed environmental law violations at Tuticorin copper smelter plant in Tamil Nadu and Konkola copper mines in Zambia.
    The company also alleged that ministry of environment & forests (MoEF) has taken action against Anil Agarwal's Lanjigarh refinery expansion at Odisha and Sea Goa's illegal mining in Goa.
    Reacting to accusations, a Vedanta spokesperson said the company is highly disappointed that such baseless and irrelevant issues are being raised and unfounded allegations are being made with the objective to malign competitors.
    "Similar attempts were made at the time of our bid for Electrosteel Steels Limited as well and the same were dealt with by NCLT and NCLAT appropriately by dismissing the challenges of competing resolution applicants. NCLAT in its order dated August 10, 2018 declared Vedanta Limited as an eligible applicant under Section 29A of the IBC," the spokesperson added.
    The National Company Law Appellate Tribunal (NCLAT) had on September 7 held Numetal's Rs 37,000 crore second-round bid for Essar Steel was valid, but rival bidder ArcelorMittal would have to clear Rs 7,000 crore overdue loans of its previously associated firms to qualify for the acquisition.
    ArcelorMittal subsequently revised its bid to Rs 42,000 crore and challenged before the Supreme Court the NCLAT order asking it to clear the dues of Uttam Galva and KSS Petron. The court is likely to further hear the appeal on Tuesday.
    (With inputs from PTI)
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
    next story

      Most Read

      Market Movers

      View All
      CompanyPriceChng%Chng