BBC reported that the Scottish Government’s Minister for Business, Trade, Tourism and Enterprise Mr Ivan McKee told that the Scottish Government may have broken state aid rules while facilitating as an intermediary in the transfer of the Dalzell plant from Tata Steel to Liberty House in 2016. Mr McKee said that it had revealed a clause, which had committed the government to protecting Tata from future costs if Liberty were to go bust, in the contract that could have broken state aid rules. Mr McKee said “A review has now found that the clause granting indemnity to Tata may represent state aid, even though no money has changed hands. This is no longer valid and unenforceable and that liability could pass back to the previous owners.”However Tata Steel UK said that it considered the deal to be valid and binding in all aspect and called for further talks with ministers. A spokesman said “In March 2016, we agreed the sale for GBP 1 of the two plants to the Scottish government which sold them on to Liberty House. This enabled steel processing to resume in Scotland. We believe this was a good outcome for the business, employees and local community. We consider the 2016 sale agreement, which was negotiated in good faith between the Scottish government and Tata Steel on commercial terms - to be valid and binding in all aspects. We would welcome further dialogue with the Scottish government on this matter to understand its position in more detail."It could fall to European courts to rule on whether state aid rules were broken and who would ultimately be liable for future costs.Two steel mills, at Dalzell and Clydebridge, were mothballed by Tata Steel in late 2015. The following year the Scottish government stepped in to facilitate their sale to Liberty House to save local jobs. The government bought the sites for GBP 1, then immediately sold them on to the new owner, Mr Sanjeev Gupta. First Minister Ms Nicola Sturgeon was present at the handover, and personally reopened the Dalzell steelworks later that year. As part of the deal, ministers agreed to protect Tata Steel from potential future costs for the Dalzell site, while Liberty House and its parent company, GFG Alliance made a similar commitment to the government.