JSW Steel has ‘delayed’ the payment of Rs19,700 crore for the acquisition of assets from Bhushan Power and Steel (BPSL), as per an agreed debt resolution plan. India’s insolvency tribunal NCLAT approved the acquisition on February 17, and the last date for payment to creditors was Monday, March 16.
The failure to meet this commitment could lead to JSW Steel being recognised as a defaulter and further delay the acquisition. JSW Steel has filed a plea with the court against being declared a defaulter.
NCLAT had approved the JSW-BPSL deal and granted JSW Steel immunity from criminal proceedings faced by BPSL’s erstwhile promoters over allegations of money laundering. Following this, Bhushan’s ex-chairman Sanjay Singal filed a special leave petition challenging the resolution deal in India’s Supreme Court, which was accepted by the court.
The petitioner raised an objection against NCLAT’s power over the enforcement directorate (ED) and its decision to allow JSW Steel access to Rs3,000 crore in Bhushan’s earnings during its insolvency period. The Supreme Court’s panel has refused to stay the JSW-BPSL deal and directed JSW to proceed with the payment of Rs19,700 crore to creditors of BPSL. The next hearing is scheduled on April 15.