NCLAT approves BPSL acquisition by JSW Steel

National Company Law Appellate Tribunal (NCLAT) on Monday allowed JSW Steel, an Indian steel company owned by JSW Group, to acquire the bankrupt company Bhushan Power & Steel Ltd (BPSL) after approving its resolution plan, for Rs 19,700 crore.

NCLAT today said that the company would be exempted from all the criminal proceeding against it, under the insolvency law, after JSW Steel takes its over. A two-member bench headed by Chairman Justice S J Mukhopadhaya informed that JSW Steel would be immune from the acts done by BPSL’s former promoters. However, they said that the EBITDA earned by BPSL during its corporate insolvency period will be given to JSW Steel.

BPSL is a bankrupt steel company, which was allegedly involved in fraud worth Rs 3,805.15 crore, as detected by Punjab National Bank (PNB) in July 2019.

At the time of market closing on Monday, the stock of JSW Steel Ltd was trading at Rs 288.05, down by 0.33 per cent against its previous close of Rs 289.00. Its 52-week high is Rs 313.40 and its 52-week low is Rs 201.90 on BSE.