Companies

NCLAT tells JSW Steel to hold payment for Bhushan Power asset 

Suresh P Iyengar Mumbai | Updated on October 14, 2019 Published on October 14, 2019

File photo   -  Bloomberg

The National Company Law Appellate Tribunal (NCLAT) has asked JSW Steel to put its plan of paying Rs 19,700 crore for Bhushan Power and Steel on hold, till clarity emerges.

The order was passed by NCLAT on Monday after the Enforcement Directorate attached the Bhushan Power and Steel asset on Saturday in a case filed by Punjab National Bank and Allahabad Bank.

The banks have claimed a fraud of Rs 5,500 crore by Bhushan Power and Steel promoters. They attached asset including  land, buildings and machinery of BPSL's plant in Sambalpur district of Odisha, worth Rs 4,025 crore. The case is being investigated under Prevention of Money Laundering Act.

NCLAT had ordered ED to release the Bhushan Power assets from attachment, and not to attach any other asset of the company. As a successful bidder for the stressed BPSL, JSW Steel had sought immunity and ring-fence the asset from the ongoing criminal investigations against the promoters.

The outcome of case would pave way for other fraudulent promoters' asset being sold-off under Insolvency and Bankruptcy Code.

Published on October 14, 2019
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