Will clear the liability, want to have a steel plant in India: ArcelorMittal tells SC
New Delhi, Sep 12 : ArcelorMittal on Wednesday told the Supreme Court that it was ready to pay Rs 7,000 crore - a liability which one of its sister concerns is burdened with for having 29 per cent stakes in now beleaguered Uttam Galva and KSS Petron - as it wanted to have its presence in India's steel sector and also live harmoniously with the banks.
Telling the bench of Justice Rohinton Fali Nariman and Justice Indu Malhotra that it would pay Rs 7000 crore, ArcelorMittal said: "I don't want to fight with Committee of Creditors. I find the (Essar Steel) plant worthy. I don't have a steel plant in India, It is worth it."
The Committee of Creditors comprises 16 lender banks that have financed the Essar Steel.
However, senior lawyer Harish Salve, appearing for ArcelorMittal, said that the company is willing to pay Rs 7,000 crore dues if it emerged as the successful bidder, but not as a precondition to become eligible to bid.
Telling the court to consider the bid of Rs 42,000 crore plus Rs 7,000 crore, Salve said: "If I am not the highest bidder, I go home. If you apply law, apply the law and see where we end up."
He said that Rs 7,000 crore, was already lying in its escrow account.
Salve said this as the court asked him if they could jack up their offer noting that if they clear their liabilities then they are at par with the NuMetal.
Salve said that they had acquired a little over 29 per cent stakes in the Uttam Galva but their's was a passive presence and at no stage they were promoters of the company now with sagging fortunes.
Even as Salve dwelt on the passive role of steel baron Mittal's company in Uttam Galva, senior counsel Mukul Rohatgi appearing for NuMetal said that they were co-promoters of the company.
On Rohatgi's intervention, Salve said: "Of course we had that right. We never exercised them. I never stepped into the shoes of promoters. I was never on the board or exercised voting rights."
Salve took exception to NCLAT holding that the stigma of NPA attached to KSS Patron cannot be cleared by KSS Global' by divesting its shares in 'KSS Petron' on 9th February, 2018.
The paragraph of NCLAT's September 7, 2018 judgment that troubled petitioner ArcelorMittal said: " Therefore, we hold that L.N. Mittal Group, a connected person of 'AM India Ltd.' being the promoter and in the control and management of 'KSS Petron' since 2011 and 'KSS Petron' having classified as 'NPA' by multiple banks, the stigma attached to it cannot be cleared by 'KSS Global' by divesting its shares in 'KSS Petron' on 9th February, 2018..."
It further said that ace... the stigma will continue for the purpose of ineligibility under clause (c) Section 29A, till the payment of all overdue amount with interest thereon and charges relating to NPA account of 'KSS Petron'.
Justice Nariman said "it is upsetting and is not correct at all".
In a counter attack on rival NuMetal, Salve described it as a Shell Company that was set up just seven days before it entered the field to bid for financially beleaguered Essar Steel facing insolvency.
Pointing to the holes in NCLAT judgment, he said that the Russia's VTB Bank backed Numetal's Rs 37,000 crore bid was accepted by the appellate tribunal without any riders.
He described as "highly unusual" the Russian bank's backing for the takeover of a sick Indian company.
He said on account of sanctions by the EU in the wake of Russia's annexation of Crimea, the Russian bank was barred from advancing any credits or trading or raising any capital from the market.
He said that the EU directives are enforceable here in India.
Meanwhile, NuMetal too has moved the court challenging three days time given by NCLAT to ArcelorMittal to deposit Rs 7000 crore to become eligible to bid.
Hearing on ArcelorMittal's appeal will continue on Thursday.
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CM Siddaramaiah alleges ‘criminal conspiracy’ in Sringeri recount, vows legal action
Bengaluru (PTI): Alleging a “criminal conspiracy” by BJP candidate D N Jeevaraj in the Sringeri Assembly poll recounting, Karnataka CM Siddaramaiah on Tuesday said the outcome was manipulated after valid postal ballot votes in favour of Congress leader T D Raje Gowda were tampered with during the recounting process.
Following a Karnataka High Court order on an election petition filed by Jeevaraj, challenging Raje Gowda’s election, the reverification and recounting were conducted on Saturday.
After the reverification and recount of postal ballots for the Sringeri Assembly constituency, votes polled in favour of Raje Gowda were reduced by 255, the returning officer said.
A report on the matter has been submitted to the Election Commission of India for further action, the officer added.
Congress leader Raje Gowda had won the 2023 Assembly polls from Sringeri by 201 votes, defeating his nearest rival Jeevaraj.
Addressing a press conference in Bengaluru, Siddaramaiah said the High Court had directed the recounting of postal ballots and that irregularities were noticed during the exercise conducted on May 2.
“This is a clear case of criminal conspiracy,” Siddaramaiah said, alleging that valid votes cast in favour of Raje Gowda were altered after being accepted by counting agents of all parties, including Congress, BJP, and JD(S).
He claimed that during the recounting of postal ballots, 255 votes were initially accepted as valid by all agents but were later tampered with by subordinate officials.
“There is a second mark on the votes polled in favour of Raje Gowda. They had accepted these as valid votes. Subsequently, another mark was made by officials. This is a clear case of criminal conspiracy,” he said.
When asked who was behind the alleged conspiracy, the CM replied, “It was hatched by Jeevaraj and others. It is planned.”
Siddaramaiah further alleged that the returning officer acted improperly by declaring the result despite the presence of an Election Commission observer during the recounting.
“Immediately after the counting, the returning officer announced the result. He should not have done so; this is against the law,” he said.
He pointed out that Raje Gowda had originally won by 201 votes, but after the recounting, the BJP candidate was declared the winner by 52 votes.
“The BJP has committed a criminal act of conspiracy. This is not vote chori but vote dacoity,” he alleged.
The CM said a police complaint had already been filed by Raje Gowda’s election agent, Sudhir Kumar, and emphasised the need for electoral integrity.
“We want transparency and free and fair elections. That is what our Constitution mandates,” he added.
Stating that the government would pursue legal remedies, Siddaramaiah said, “We are preparing an appeal challenging the returning officer’s announcement in a court of law.”
Responding to a separate query on elections in other states, the CM said there appeared to be an anti-incumbency factor in West Bengal, while results in Tamil Nadu were “surprising,” adding that Vijay’s party was emerging as the largest there.
Following the victory of party candidates in Bagalkote and Davanagere South, Siddaramaiah expressed confidence about future electoral prospects in Karnataka.
“Even in 2028, we will win the Assembly elections. We will come back,” the CM said.
Siddaramaiah added that he would order a forensic examination into the alleged tampering of postal ballots.
