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NCLAT Slams ED & Puts on Hold JSW Steel Payout

Steel News - Published on Tue, 15 Oct 2019

Image Source: Moneycontrol
The National Company Law Appellate Tribunal has put on hold the INR 19,700-crore payout by JSW Steel for acquiring Bhushan Power and Steel Limited till its further orders and has asked the Enforcement Directorate to release the attached properties of BPSL and directed not to attach any further assets without its permission. An NCLAT bench headed by Chairman Justice SJ Mukhopadhyaya slammed the ED, saying that Insolvency and Bankruptcy Code would fail if the agency functions like this. They said "IBC cannot be annulled in this manner. Money laundering is by an individual. ED has no jurisdiction to attach the property of a corporate debtor, particularly when an appeal is pending with regard to attachment. Under facts and circumstances, while we allow the ED to file a reply affidavit, the deputy director ED and any other officials of the ED are to release the property attached in favour of resolution professional immediately.”

He directed the agency and the CBI to file a reply in the next two days.

NCLAT has listed the matter on October 25 for further hearing.

The Enforcement Directorate on Saturday said it has attached assets worth over Rs 4,025 crore of BPSL in connection with its money laundering probe linked to an alleged bank loan fraud. The central probe agency said it has attached land, building, plant and machinery of the firm located in Odisha under the provision of the Prevention of Money Laundering Act

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Posted By : Ratan Singh on Tue, 15 Oct 2019
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