A writ petition has been filed in the Bombay High Court alleging a shortfall of ₹313 crore in stamp duty payments by the ArcelorMittal Group during its acquisitions of Essar Steel and Uttam Galva Group under the Insolvency and Bankruptcy Code (IBC) in 2018 and 2022, respectively.
The petition, filed by Delhi-based Sayam Securities, claims that during the acquisition process, ArcelorMittal Group was assigned bad debts worth ₹6,264 crore from various creditors of the two entities. According to the petitioner, this debt transfer triggered an additional stamp duty liability of ₹313 crore, which remains unpaid.
The writ petition further claims that the Collector of Stamps (Mumbai) has already issued show-cause notices to the ArcelorMittal Group on June 10, 2025, and June 19, 2025, in connection with the matter. The case was last heard by the High Court on September 24, 2025, when the court directed the Collector of Stamps to decide on the complaint filed by the petitioner within four weeks, after which the court will review the matter further.
At the core of the dispute lies the interpretation of how such assignments of debt and securities are treated under the Maharashtra Stamp Act. According to the petition, ArcelorMittal Group availed of Article 25(a) of the Act, which provides certain concessions on the transfer of debt classified as movable property. However, the petitioner contends that when such debts are secured by immovable property, the transaction falls under Article 25(b), which does not provide such exemptions.
The petition alleges that the loans sold to ArcelorMittal by lenders included both movable and immovable assets and should therefore attract higher stamp duty. It further claims that all loan transfers were executed through a single agreement, even though the Stamp Act prescribes a cap of ₹1 lakh per individual agreement—implying that such a consolidated agreement should be treated as multiple agreements and be subject to additional duty.
“There has been massive evasion of stamp duty by banks and asset reconstruction companies, partly through misclassification of secured debt involving immovable property under Article 25(a) instead of 25(b), and partly through the execution of a single agreement covering multiple loan contracts,” the petition by Sayam Securities dated September 10, 2025, states.
ArcelorMittal’s major IBC acquisition in India was Essar Steel India, completed in December 2019 through a joint venture with Nippon Steel Corporation, now operating as ArcelorMittal Nippon Steel India. The group also completed the acquisition of Uttam Galva Steels in November 2022 via AM Mining India, another joint venture with Nippon Steel.
An email sent to ArcelorMittal Group seeking comment remained unanswered at the time of publication.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
