Odapada: Even as the bidding process for takeover of 5.6 million tonne Bhushan Steel at Kantbania in Dhenkanal district is over, stalemate continues to plague its acquisition, a report said Saturday.
This has happened as the matter is sub-judice in National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT). The committee of creditors (COC) is yet to take a decision on the future ownership of the plant. However, a report published in a national daily on the acquisition of the plant has given rise to speculations. The report said Tata Steel has been facing problems in acquiring the plant.
Leading vernacular daily Dharitri tried to probe the charges as claimed in the report. Notably, the Singhals who own the steel firm do not have experience in running steel plants. The family, which has steel business in north India, drew flak while it approached the state government for establishment of the plant.
The company got a lot of sops like large swathes of land and plenty of ground water by way of illegal drilling. This made its owner whimsical resulting in death of over 200 persons in a series of mishaps.
A major blast had also rocked the plant November 13, 2013. However, the details about the casualties in the blast are yet to be established. The company managed to get away with all its wrong-doings due to its proximity with local business persons and the apathy of the district administration, especially the district labour department.
Meanwhile, the company got into bankruptcy due to mismanagement as it failed to clear the outstanding loans within the deadline.
The NCLT imposed a stay on loan repayment of the firm under Section-14 of the Insolvency and Bankruptcy Code (IBC) July 26, 2017. The NCLT also withdrew administrative and financial power of the firm and nominated resolution professional Bijay Kumar V Ayer to manage its affairs.
At present, the plant runs under the direction of NCLT. Meanwhile, Tata Steel March 7 claimed that it was the highest bidder for the Bhushan Steel acquisition.
The COC has accepted the resolution plans of both the bidders-Tata Steel and UK-based Liberty House and has directed them to submit them in closed envelopes. Sources said Tata Steel could not claim itself as the sole bidder as quoting the highest price is not the only criteria for selection of the bidder. Both the firms have the options to approach the apex court against the ruling of the tribunal which alone has the power to take a decision on the issue.
When contacted, Pabitra Biswal, general secretary of Bhushan Steel Shramik Sabha, said they have sent a letter to the District Collector over a false report in the national daily and will welcome whosoever wants to take over the plant.
