SC to hear plea against NCLAT nod to JSW acquisition of BPSL

Source :IANS
Author :IANS
Last Updated: Sat, Mar 7th, 2020, 13:32:18hrs
Supreme Court

New Delhi:  The Supreme Court on Friday agreed to examine a plea against the NCLAT order, which allowed JSW Steel to acquire Bhushan Power & Steel Ltd for Rs 19,700 crore and shielded it from prosecution by the Enforcement Directorate.

A bench of Chief Justice S.A. Bobde and Justices B.R. Gavai and Surya Kant, however, declined to put the sale on hold.

The top court said the appeals are admitted, and noted senior advocate Abhishek Manu Singhvi, representing Committee of Creditors, submits that in case, money is received then the same will be returned within two months, if appeals were to succeed.

The top court has posted the matter for further hearing on April 15.

A two-member bench of the National Company Law Apellate Tribunal headed by its Chairman, Justice (retd) S.J. Mukhopadhaya, had ruled JSW Steel will be immune from the acts done by the former promoters of Bhushan Power & Steel Ltd (BPSL).

The appellate tribunal also rejected the petitions filed by the operational creditors, who sought higher claims. On October 10, the Enforcement Directorate had attached assets worth over Rs 4,025 crore of debt-ridden BPSL following its probe into money laundering connected to an alleged bank loan fraud by its former promoters.

The appellate tribunal had said the prosecution against the former promoters under the money laundering can continue.