Supreme Court case to delay Jindal-BPSL deal

JSW Steel may get a breather to conclude the Rs 19,700-crore deal to acquire Bhushan Power & Steel Ltd through bankruptcy proceedings after the Enforce Directorate filed a petition before the Supreme Court challenging the transaction.

The ED argued that BPSL cannot seek protection from charges slapped under the PMLA (Prevention of Money Laundering Act) under Section 32A of the Insolvency & Bankruptcy Code, a newly inserted section, which came into effect on December 28, 2019.

Section 32A gives immunity to corporate debtors — the corporate entity to be acquired through IBC — from any prosecution, attachment or confiscation arising out of charges against the erstwhile promoter, after the plan is approved.