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NCLAT Provides Immunity to JSW Steel for BPSL Acquisition

Steel News - Published on Tue, 18 Feb 2020

Image Source: NCLAT
The National Company Law Appellate Tribunal has approved JSW Steel’s resolution plan to takeover of bankrupt Bhushan Power & Steel Ltd for INR 19,700 crore by providing it immunity from the ongoing criminal investigation against promoter of Bhushan Power. A two-member bench headed by Chairman Justice S J Mukhopadhaya said that JSW Steel will be immuned from the acts done by the former promoters of the Bhushan Power & Steel Ltd. However, it also said that prosecution against the former promoters under the money laundering act by the Enforcement Directorate can continue.

The bench said that the EBITDA earned by BPSL during its Corporate Insolvency resolution period will be given to JSW Steel.

It has also rejected the petitions filed by operational creditors, seeking higher claims.

It is likely that the investigating agencies such as CBI and ED may move to the Supreme Court against the verdict, questioning the authority of NCLAT to provide immunity.

Source :

Posted By : Nishith Sharma on Tue, 18 Feb 2020
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