NCLAT approves JSW Steel’s ₹19,700-crore proposal to acquire Bhushan Power

The National Company Law Appellate Tribunal has approved the ₹19,700-crore resolution plan of JSW Steel to takeover the bankrupt Bhushan Power and Steel. The approval comes with the immunity sought by the new owner against investigations being carried out against the erstwhile promoters of Bhushan Power and Steel.

This comes after the government recently amended Section 32A of the Insolvency and Bankruptcy Code, providing immunity to the bidders and the insolvent company’s assets from investigation. However, the Enforcement Directorate had argued that the amended Act will not have retrospective effect and cannot be applied in JSW Steel’s case.

After its bid was approved by NCLT, Sajjan Jindal-promoted JSW Steel had moved NCLAT, seeking immunity from the ongoing criminal investigation against BPSL promoters.