8 February 2019: Standard Chartered Bank’s (SCB) counsel on Thursday termed the bid made by ArcelorMittal for the distressed Essar Steel Limited (ESL) as ‘big scam’ during the hearing of Essar Steel Insolvency Case.
Arguing before the Ahmedabad bench of National Company Law Tribunal (NCLT) on Thursday, the SCB counsel said that instead of upfront payment of over Rs 42,000 crore, ArcelorMittal submitted a plan of Rs 39,500 crore and Rs 2,500 crore for working capital.
He further said that the profit being earned by Essar Steel which is monthly Rs 180-200 crores per month shouldn’t belong to the bidder but it should be given to creditors. SCB counsel also raised concern over the role of resolution professional (RP) and committee of creditors (CoC) appointed sub-committee.
Earlier RP’s counsel stated that RP’s job is to present resolution plan to CoC for approval and he is not responsible for any decision. “Role of RP is just that of a facilitator. It is CoC, which decides on Resolution Plan. Distribution mechanism is also decided by CoC. Both these plans were voted separately and passed with majority,” he told the NCLT.