The lenders of Bhushan Power and Steel have claimed that JSW Steel is using the ongoing investigation by the Enforcement Directorate to delay the implementation of the resolution plan approved by the NCLT.

The corporate insolvency resolution process of Bhushan Power started in 2017 and JSW Steel’s ₹19,700-crore resolution plan was approved by the Committee of Creditors.

However, the ED had attached the properties of Bhushan Power in a money laundering case against its former promoters. Meanwhile, the NCLT approved JSW Steel’s resolution plan early this year, but the company has not paid the money citing ED probe.

Banks losing interest

Abhishek Manu Singhvi, appearing on behalf of the CoC of Bhushan Power, on Wednesday told the top court that JSW Steel was hiding behind the ED investigation. He said banks are losing out due to delays as they could have lent eight-nine times the receivable of ₹19,700 crore. They are losing interest income on the dues payable. As part of the resolution plan, JSW Steel is expected to receive all the profit earned during the resolution period.

Earlier, the ED, in its petition to the apex court, had come down heavily on the deal and claimed that the NCLT had no authority to approve sale of an asset attached by it as part of the investigation. JSW Steel refused to comment on the arguments made in the Supreme Court.