Corporate

Supreme Court seeks response from Vedanta on Renaissance Steel’s appeal

The Supreme Court on Monday sought response from Vedanta, State Bank of India and others on Renaissance Steel India’s appeal alleging that the Anil Agarwal-led company is ineligible to bid for the takeover of bankrupt Electrosteel Steel India, as its affiliates in Zambia has been found guilty of criminal misconduct punishable with two or more years in jail. Renaissance Steel is contesting Rs 5,320-crore resolution plan by the Vedanta group for Electrosteel, which has been approved by the Kolkata bench of the NCLT as well as the National Company Law Appellate Tribunal.

Renaissance has questioned the eligibility of Vedanta to bid for takeover of Electrosteel on the grounds that Zambia-based Konkola Copper Mines (KCM), which is a connected person of the former, was found guilty under the Zambian Environment Protection and Pollution Control Act 1990. According to Renaissance, the Zambian Act fulfils the disqualification requirements of Section 29(d) of the IBC which provides that a person will be disqualified if its related party is not eligible due to any conviction Since KCM had been convicted for an offence under the Zambian law, punishable with imprisonment for two years or more, Vedanta also stands disqualified under the IBC to submit a resolution plan for Electrosteel.

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