According to Indian business daily Business Standard, the bids were rejected owing to past affiliations of each of the bidders. In ArcelorMittal’s case, it was declared ineligible because of a stake it had held in an Indian steelmaker also undergoing insolvency proceedings. The other bid, from an entity called NuMetal, was deemed ineligible because of a financial connection with a member of Essar’s founding family. 

The creditors are now calling for a second round of bidding, according to the newspaper.

Essar Steel is one of a dozen debt-laden companies forced into insolvency proceedings by India's central bank.