Companies

Numetal joins war of letters, points fingers at Mittals

Suresh P Iyengar Mumbai | Updated on September 17, 2018 Published on September 17, 2018

The fight to take control of Essar Steel intensified on Monday with Numetal seeking to know from the the resolution professional (RP) overseeing the insolvency case, if LN Mittal had disclosed that his brothers had been declared defaulters by banks.

Numetal, a consortium led by Russia’s VTB Bank, and LN Mittal’s ArcelorMittal are rival contenders in the bid to acquire stressed asset Essar Steel.

In a letter written on Monday to Satish Kumar Gupta, RP of Essar Steel, Numetal said it had submitted before the National Company Law Tribunal (NCLT) and appellate body NCLAT, that ArcelorMittal is a disqualified bidder, as LN Mittal’s brothers Pramod and Vinod had defaulted on their loans.

The loans availed by Gontermann Peipers, promoted by the Mittals, has remained a non-performing asset for more than a year before Essar Steel became insolvent, Numetal said. It added that the insolvency case against Peipers, in which both brothers were either promoters or in management control, had been accepted.

In addition, the loan of ₹2,000 crore availed by Ispat Profile, owned by the Mittal brothers, had been declared an NPA and dragged to insolvency.

Similar is the case with Chhatisgarh Energy, Balasore Alloys and GPI Textiles, Numetal said, urging the RP to confirm the facts with ArcelorMittal and give a response in writing by Tuesday for submission in the Supreme Court.

Numetal alleged that Pramod Mittal had been facing a cheating and fraud charges for inflicting a ₹2000-crore loss to the government-owned State Trading Corporation. Vinod Mittal has been disqualified to be a director under Companies Act and by virtue of this, ArcelorMittal is disqualified to bid for Essar Steel, it said.

Published on September 17, 2018
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