NEW DELHI : India’s second-largest private steelmaker, JSW Steel Ltd, may go slow on buying bankrupt Bhushan Power and Steel Ltd, despite the cabinet on Tuesday approving an ordinance to ring fence successful bidders from criminal proceedings for offences committed by previous promoters, three people with knowledge of the matter said, requesting anonymity.
The cabinet’s approval did not give too many details and, as such, JSW steel will wait for further clarifications from the National Company Law Appellate Tribunal (NCLAT) when the matter comes up for hearing on 13 January. The ordinance says that ongoing investigations against original promoters will continue and the new owner must attend all proceedings.
“The fine print is not clear on this ordinance yet. JSW will move ahead only when everything is crystal clear because the stakes involved are too high,” said one of the persons mentioned above.
