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The National Company Law Tribunal (NCLT) has approved the JSW Steel ’s ₹19,700-crore bid for debt-ridden Bhushan Power & Steel Ltd (BPSL) and assured that the slew of criminal proceedings against BPSL promoters will not affect the company in future.
While clearing the bid, the two-member principal bench of the NCLT headed by President Justices MM Kumar and SK Mohapatra on Tuesday said the criminal cases against the promoters of BPSL for siphoning off the funds from the company will not to impact JSW Steel as its new promoter.
Read also: Delay in IBC resolution a concern: JSW Steel chief
NCLT also said the profit made by BPSL during the insolvency period will be distributed between creditors of Bhushan Power, in accordance with the ruling by the National Company Law Appellate Tribunal in the ArcelorMittal case.
The cases in which the adjudicating authority or the appellate authority could not decide the claim on merit, the applicant can raise the issue before appropriate forum in terms of Section 60(6) of the Code, the judgment said.
It also rejected plea for various relief sought by JSW Steel in the resolution plan from the statutory authorities under Income Tax Act, Ministry of Corporate Affairs, Department of Registration and Stamps and RBI and directed to file separate application before the concerned authorities.
Read more: Scam may delay JSW’s buy of Bhushan Power
BPSL will add 3.5 million tonnes to the annual capacity of JSW Steel. The company received Letter of Intent from the Insolvency Resolution Professional in February.
Initially, JSW Steel had placed a bid of ₹9,500 crore for the Bhushan Power asset by revised it to ₹19,700 crore and that offer was approved by the CoC with 97 per cent vote.
Earlier, Tata Steel, which was declared the highest bidder, had raised objection over JSW Steel revising its bid twice, but its contention was rejected by NCLAT paving way for acceptance of JSW Steel bid. In April, the NCLT had reserved its judgment after concluding hearing from the parties.
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