ArcelorMittal Seeks Immunity for Essar Steel Assets From Future Investigations

SEATTLE (Scrap Monster): Luxembourg-headquartered ArcelorMittal has approached Indian authorities seeking immunity for acquired Essar Steel assets from any future investigations into Essar Steel and its erstwhile promoters Ruias. The move is feared to further delay the closure of Essar Steel resolution.

The top-delegation of officials from the company met Indian officials belonging to various government ministries including home, finance, law and defence. They urged the administration that the company must be provided an assurance that any future probe into the Ruia family should not impact Essar steel assets. This is to ensure that no troubles arise in future after the money is transferred to the escrow bank account.

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As per reports, ArcelorMittal has received positive replies from various ministries in response to the concerns raised by them. However, the company is likely to wait for the outcome of the case filed by JSW Steel in NCLAT.

Essar Steel had approached bankruptcy court in 2017. ArcelorMittal emerged as the winning bidder for its assets, after reaching an agreement to pay INR 42,000 crores towards acquisition. The total outstanding dues of Essar Steel were estimated at around INR 54,500 crores.

It must be noted that, in a similar move, JSW Steel has sought immunity for Bhushan Power and Steel (BPSL) assets. The Enforcement Directorate (ED) authorities had attached the properties of BPSL under the Prevention of Money Laundering Act, in connection with ongoing cases against its promoters.