The payment settles cases against Mittal, and will ensure that brother LN Mittal's planned acquisition of Essar Steel doesn't have any hiccups.
Pramod Mittal, the younger brother of ArcelorMittal owner LN Mittal, has cleared dues of Rs 2,200 crore owed to State Trading Corporation of India.
While the payment settles proceedings filed by CBI and Enforcement Directorate against Pramod Mittal, it also ensures that brother LN Mittal's planned acquisition of Essar Steel doesn't have any hiccups.
Numetal, the VTB Bank-led consortium that was in reckoning for Essar Steel till last year, had raked up the issue of loan defaults by Pramod Mittal and had asked if LN Mittal was a promoter in any of his brother's firms.
According to the Insolvency and Bankruptcy Code, promoter of a defaulting company is barred from bidding for stressed assets.
In an order earlier this week, National Company Law Appellate Tribunal gave conditional approval to ArcelorMittal's Rs 42,000-crore proposal for
Dues cleared
A statement, released by Pramod Mittal firms Global Steel Holdings and Global Steel Philippines, said:
"All the proceedings have been resolved/settled pursuant to orders dated December 6, 2018 and March 12, 2019 passed by the Hon’ble Supreme Court of India and all the aforesaid proceedings, including various criminal cases, proceedings instituted against, inter alia, GSHL, GSPI, Mr. Pramod Mittal and Balasore Alloys Limited by the Enforcement Directorate and FIR registered by the CBI, have been quashed."
These firms had bought raw materials from STC, but had not paid dues after the global meltdown during 2008-2010. Though after a conciliation proceeding it was agreed that Rs 1,605 crore will be paid, the two companies didn't do so.
