Companies

Bhushan Power case: ED to move apex court against NCLAT order

Suresh P Iyengar Mumbai | Updated on October 17, 2019 Published on October 17, 2019

File Photo of Bhushan Power and Steel Plant.   -  x

The Enforcement Directorate (ED) plans to move the Supreme Court against the National Company Law Appellate Tribunal (NCLAT) order directing it to release the attached property of Bhushan Power and Steel Ltd (BPSL). The decision may further delay the insolvency resolution of BPSL, which has been going on for two years.

Investigating the case filed against BPSL promoters Sanjay and Aarti Singhal, the ED had attached the company’s plant and various properties worth ₹4,025 crore. Earlier, Punjab National Bank and Allahabad Bank had accused the promoters and directors of BPSL of availing a loan worth ₹5,500 crore by producing false documents.

Hearing the petition filed JSW Steel, the highest bidder for BPSL, SJ Mukhopadhaya, Chairperson, NCLAT, had said the stand taken by the ED was contrary to that of the government, and hence the order of attachment with regard to part property of BPSL was stayed.

Further, the order said, the ED is prohibited from attaching any property of BPSL without the prior approval of NCLAT. The property already attached by it should be released in favour of the Resolution Professional immediately, it added.

Next hearing in the case is slated for October 25.

Published on October 17, 2019
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