NCLAT gives JSW Steel immunity from ED in Bhushan Power acquisition

MUMBAI : India’s top bankruptcy court approved the sale of distressed Bhushan Power and Steel Company to JSW Steel on Monday. The court also gave the buyer immunity from investigations into financial fraud allegedly committed by the former owners of the steel firm.

Bhushan Power was part of the original dirty dozen cases identified by the Reserve Bank of India to be referred to bankruptcy courts. JSW Steel, with an offer of ₹19,700 crore for the bankrupt steel mill, was the highest bidder for the asset. However, the Enforcement Directorate, which is pursuing an investigation into alleged money laundering by the company under its previous management, attached the assets of the steel mill, stalling its sale.