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JSW Bhushan Power Acquisition in Deep Freeze

Steel News - Published on Fri, 15 Nov 2019

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Business Standard reported that JSW Steel, looking to acquire bankrupt Bhushan Power and Steel Ltd, might have a longish wait. . The ED is learnt to have told the tribunal and the Union ministry of corporate affairs that revoking property attchment will require amending the Prevention of Money Laundering Act. A senior ED official said that “The probe agency, under Section 41 of PMLA, cannot revoke any action taken under the said law, unless the Supreme Court intervenes.”

Section 41 says: "No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the Director, an adjudicating authority or the appellate tribunal is empowered by or under this Act to determine, and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act."

The National Company Law Appellate Tribunal had directed the government's Enforcement Directorate to revoke the properties the latter had attached of Bhushan. The ED had done so on the reasoning that these were proceeds from criminal acts

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Posted By : Rabi Wangkhem on Fri, 15 Nov 2019
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