Essar Steel: NCLAT questions 'magical accounting' by ArcelorMittal, CoC

During its submissions on Monday, ArcelorMittal had said that it would give Rs 42,000 crore as upfront payment

The National Company Law Appellate Tribunal (NCLAT) on Tuesday observed that the Committee of Creditors (CoC) of Essar Steel India Ltd and ArcelorMittal had done some ‘magical accounting’ by which they had adjusted Rs 2,500 crore from the Rs-42,000 crore bid amount and kept it as working capital. A two-member bench led by Justice S J Mukhopadhaya, while reserving their judgement on the matter, observed that they would look into the issue and “give our own accounting” if the answers by ArcelorMittal and CoC did not satisfy them.

The observations by the two-member appellate tribunal bench came on the submissions