Companies

Bhushan Power case: NCLAT directs ED, MCA to reach consensus on asset attachment

Our Bureau Mumbai | Updated on October 25, 2019 Published on October 25, 2019

The National Company Law Appellate Tribunal (NCLAT) had directed the Enforcement Directorate (ED) and Ministry of Corporate Affairs (MCA) to reach a consensus on settling the conflict in the provision of Prevention of Money Laundering Act with regard to attachment of property under insolvency.

Hearing a case filed by JSW Steel at NCLAT, a three-member bench headed by Chairperson Justice SJ Mukhopadhaya said there was no question of amendment of laws, and both the wings of the central government should settle the issue.

"You are the two wings of the same government. You should talk it out and settle the issue," he said.

The next hearing in the case is posted for November 18.

If there is an issue, ED can assess the proceeds of crime and claim its dues as an operational creditor under the Insolvency and Bankruptcy Code, he said.

The claim would be settled as per IBC norms, said NCLAT.

Earlier, JSW Steel which is the successful bidder for acquiring Bhushan Power and Steel asset has sought immunity from the criminal proceedings against promoters of the insolvent company.

Punjab National Bank and Allahabad Bank had recently filed cases against the promoters of Bhushan Power and Steel for taking Rs 5,600 crore loan by cooking up accounts. Following this, ED had attached properties of promoters including that of Bhushan Power and Steel which was under insolvency proceedings.

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Published on October 25, 2019
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