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NCLAT Seeks ED Response on JSW Steel Liability in BPSL Case

Steel News - Published on Tue, 14 Jan 2020

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The National Company Law Appellate Tribunal has directed the Enforcement Directorate and Serious Fraud Investigation Office to verify if JSW Steel Ltd is protected from Bhushan Steel and Power Ltd’s past criminal liabilities. It has also directed the agencies to file an affidavit to confirm whether JSW Steel would be covered under the newly added section 32A of the Insolvency Code and provide reasons if no such immunity are granted. The appellate tribunal has directed the parties concerned to file replies by January 20 and will hear the matter on January 23.

That comes after the Enforcement Directorate filed a case of money laundering against Bhushan Power and Steel, its promoters and former directors in May 2019. The Central Bureau of Investigation had filed a first information report against the company and some of its erstwhile directors. Four months later, JSW Steel sought immunity from the power producer’s criminal liabilities, contending that the absence of any such protection jeopardised the feasibility and viability of its resolution plan. While the tribunal approved JSW Steel’s resolution plan for Bhushan Power, it refused to grant any immunity from ongoing criminal investigations.

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Posted By : Rabi Wangkhem on Tue, 14 Jan 2020
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