BUSINESS

NCLAT allows JSW Steel to acquire Bhushan Power

BPSL’s Ebitda earned during its insolvency resolution period will be given to JSW Steel.B. M. Siddalingaswamy

BPSL’s Ebitda earned during its insolvency resolution period will be given to JSW Steel.B. M. Siddalingaswamy  

Tribunal provides immunity from prosecution by ED

The National Company Law Appellate Tribunal on Monday allowed JSW Steel to acquire of Bhushan Power & Steel Ltd. for Rs. 19,700 crore by providing it immunity from prosecution by Enforcement Directorate.

A two-member bench headed by Chairman Justice S.J. Mukhopadhaya, said that JSW Steel would be immunefrom the acts done by the former promoters of Bhushan Power & Steel Ltd. (BPSL). However, it said that prosecution against the former promoters under the Money Laundering Act by the Enforcement Directorate could continue. It has also rejected the petitions filed by operational creditors, seeking higher claims.

The Bench said that the Ebitda (earnings before interest, tax, depreciation and amortization) earned by BPSL during its Corporate Insolvency resolution period will be given to JSW Steel.

On October 10, the ED had attached assets worth over Rs. 4,025 crore of debt-ridden BPSL in connection with its money laundering probe linked to an alleged bank loan fraud by its former promoters.

JSW Steel, which emerged as the successful resolution applicant with its Rs. 19,700 crore bid for BPSL, filed an appeal against the ED’s move before the National Company Law Appellate Tribunal (NCLAT).

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