The National Company Law Appellate Tribunal (NCLAT) on Wednesday allowed Vedanta Limited to acquire Electrosteel Steels by depositing the up-front payment of ₹5,320 crore to the lenders. However, the deal will be subject to the final outcome of a petition filed by Renaissance Steel before the NCLAT challenging Vedanta’s eligibility to bid.
NCLAT also added that if the final order is in favour of Renaissance Steel, then the Committee of Creditors (CoC) will have to return the money to Vedanta. Renaissance Steel had also bid for Electrosteel Steels but the company’s bid was rejected.
Renaissance Steel, it may be recalled, had opposed the resolution plan, stating that Vedanta was not eligible to bid for Electrosteel since one of Vedanta’s affiliates — a unit of its UK-based parent Vedanta Resources Plc — had been found guilty of criminal misconduct punishable with two or more years in jail. The matter will be heard again on May 17.
The Kolkata bench of the NCLT had approved Vedanta’s ₹5,320-crore resolution plan for Electrosteel.