The National Company Law Appellate Tribunal (NCLAT) on Monday approved JSW Steel’s resolution plan to takeover of bankrupt Bhushan Power & Steel Ltd for Rs 19,700 crore by providing it immunity from the ongoing criminal investigation against promoter of Bhushan Power.
A two-member bench headed by Chairman Justice S J Mukhopadhaya, said that JSW Steel will be immuned from the acts done by the former promoters of the Bhushan Power & Steel Ltd.
However, it also said that prosecution against the former promoters under the money laundering act by the Enforcement Directorate can 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.
It is likely that the investigating agencies such as CBI and ED may move to the Supreme Court against the verdict, questioning the authority of NCLAT to provide immunity.
Meanwhile, the ED has already seized assets of the steel company as part of the probe.
(With input from agencies)