SC orders ED to handover Rs 4,025 crore worth of Bhushan Power & Steel properties to JSW Steel  

On December 13, the Supreme Court had directed the Enforcement Directorate (ED) to transfer debt-ridden properties of Bhushan Power & Steel worth Rs 4.025 billion, which were provisionally attached in 2019 in connection with a money laundering investigation linked to an alleged bank loan, to JSW Steel. He instructed to hand it over. Fraud committed by the old administration.

A bench headed by Justice Bela M Trivedi and Justice SC Sharma directed the release of properties of corporate debtor Bhushan Power and Steel Ltd, which were provisionally attached by the Enforcement Directorate (ED).

The properties will now be transferred to JSW Steel Ltd (JSW), which is the successful resolution applicant in the insolvency case of Bhushan Power and Steel Ltd (BPSL).

The Enforcement Directorate had provisionally attached the assets under the Prevention of Money Laundering Act (PMLA) in 2019 as the former management was under investigation for alleged bank loan fraud.

ED has returned assets of erstwhile Bhushan Steel and Power Limited worth Rs 4,025 crore to JSW Steel, following the Supreme Court’s approval, the organization said in a statement on December 14. The agency said the return of assets was made in accordance with Section 8(8) of the Order. PMLA (return pending trial) read with Rule 3A of PMLA Restoration of Property Rules.

Based on the affidavit filed by the ED, the High Court observed that Section 8(8) of the Prevention of Money Laundering Act, 2002 read with Rule 3A of the Prevention of Money Laundering (Restoration of Property) Rules. 2016 allowed JSW to take control of the corporate debtor’s properties provisionally attached by the ED. ED also stated that considering the unique circumstances of the present case, JSW should be allowed to take control of the attached properties.

BPSL, under the management and control of JSW Steel Ltd., has undergone significant transformation. As of now, BPSL provides direct and indirect employment to more than 20,000 people. In the short three years since the implementation of the resolution plan, BPSL has doubled its operational steel production and manufacturing capacity, operating with only one-tenth of the liabilities it faced at the start of the insolvency proceedings.

JSW Steel Ltd was represented before the Supreme Court by Karanjawala & Co legal team led by Nandini Gore (Senior Partner), Tahira Karanjawala (Partner), Swati Bharadwaj, Akarsh Sharma along with Senior Advocates Neeraj Kishan Kaul and Gopal Jain. Manvi Rastogi and Sharanya Ghosh.