ArcelorMittal Seeks Protection Against Future Essar Steel Investigations

ArcelorMittal of steel tycoon Lakshmi Mittal has asked the government for immunity from possible future investigations involving Essar Steel and its former promoters, the Ruia family.

Mittal wants to avoid repeating any controversy like Bhushan Power and Steel (BPSL), where the Legal Directorate seized the firm's assets after it was acquired by JSW Steel from the national legal tribunal.

“ArcelorMittal has negotiated with several ministers and government officials and has received a positive response,” one of the people with knowledge of the developments said in an interview, adding that the company has reached out to ministries including the ministries of the interior, finance, justice and defense.

“It has been a long battle for the Mittals, and this is their way of preventing future problems after they transfer money to banks. ArcelorMittal is very clear that it does not want any ambiguity about current or future commitments, ”he said.

When contacted by the newspaper, ArcelorMittal declined to comment, while inquiries to ministries received no response.

Essar Steel was brought to bankruptcy court in June 2017 and ArcelorMittal was finally able to salvage assets from Rs 42,000 crore. Essar Steel owes banks Rs 54,500. “ArcelorMittal wants to obtain legal clarity from the government before the company transfers the money to an escrow account,” it said.