JSW may challenge NCLT order on Bhushan Power profits redistribution

JSW Steel, which won Bhushan Power and Steel (BPSL) at the insolvency court, is likely to challenge the National Company Law Tribunal (NCLT)’s decision to redistribute profits earned during the insolvency resolution period among creditors, while seeking further immunity from ongoing investigations against the bankrupt steelmaker, people aware about the development said.

Sanjay Singhal, erstwhile promoter of BPSL, and other directors are facing probe from multiple agencies including, the Enforcement Directorate (ED), for fraud and siphoning of money.

While the New Delhi Bench of the NCLT on September 5 directed the resolution professional (RP) to redistribute the profits earned by BPSL between July 2017 and August 2019 among all the financial and operational creditors on a pro-rata basis according to the NCLAT order in the Essar case, it said the criminal proceedings initiated against the erstwhile board members and others will not effect JSW Steel or the implementation of the resolution plan.