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NCLAT Halts Handover of SAIL-Steel Complex to Chhattisgarh Firm

Updated: Jun 14, 2024 04:21:56pm

NCLAT Halts Handover of SAIL-Steel Complex to Chhattisgarh Firm

New Delhi, Jun 14 (KNN) The National Company Law Appellate Tribunal (NCLAT) has temporarily halted the transfer of ownership of the SAIL-Steel Complex, a public sector undertaking located in Kozhikode, Kerala, to Chhattisgarh Outsourcing Limited.

This interim order comes after the Kerala State government filed an appeal against an earlier tribunal ruling that had approved handing over the company to the Chhattisgarh-based firm under a resolution plan.

The original NCLT order had cited the SAIL-Steel Complex's default on repaying a Rs 45 crore loan taken from Canara Bank in 2013 as grounds for the handover. Canara Bank had approached the tribunal alleging non-payment of the outstanding dues.

In its appeal, the Kerala government argued that the Steel Complex, being situated on state-acquired land, cannot be transferred to another entity without proper permission from the state authorities.

The SAIL-Steel Complex is a joint venture between the Steel Authority of India Limited, a central public sector unit, and Steel Complex Limited, owned by the Kerala government.

The company scaled back operations in 2014 before entirely ceasing business activities in December 2016.

The NCLAT's interim stay order puts the ownership transfer on hold until the appeals process is complete and a final ruling is issued. Further hearings on the matter are expected in the coming weeks.

(KNN Bureau)


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