Latest news with #BPSL
Business Standard
4 days ago
- Business
- Business Standard
Rajeswari Sengupta Rajeswari Sengupta
Rajeswari Sengupta India's overzealous anti-dumping response may gradually fuel protectionism Its liberal use of anti-dumping duties risks turning into protectionism - and may do more harm than good Bhushan Power and Steel case: A test for India's insolvency regime In a major reversal, the Supreme Court ruled that the resolution plan for BPSL, approved by the committee of creditors (CoC) and cleared by both the insolvency and the appellate tribunals Updated On : 19 May 2025 | 11:09 PM IST India must watch out for GDP growth with third chance at doorstep Having missed two chances to boost manufacturing, India can't afford to miss the third one now at its doorstep Updated On : 14 Apr 2025 | 11:09 PM IST Updated On : 18 Mar 2025 | 3:20 PM IST Budget 2025: Balancing reforms and fiscal consolidation to revive growth The two key questions are: What is the diagnosis of the economic slowdown? And what can the Budget do to address it? Updated On : 20 Jan 2025 | 11:37 PM IST Rajeswari Sengupta & Anirudh Burman: Ushering in insolvency professionals Countries such as the United Kingdom and Canada have a well-developed cadre of self-regulated insolvency professionals Updated On : 20 Nov 2016 | 9:30 AM IST GDP conundrum: Is India booming? While CSO insists India is the world's fastest-growing large economy, private economists say the country is struggling to recover from its post-2010 downturn Updated On : 17 Nov 2016 | 4:19 PM IST Anirudh Burman & Rajeswari Sengupta: Clear the air before enforcing Bankruptcy Code Poor regulation of the insolvency professional industry will lead to poor bankruptcy outcomes Updated On : 09 Oct 2016 | 9:59 PM IST Pratik Datta & Rajeswari Sengupta: RBI should not regulate asset reconstruction companies Banking and stressed asset management are two separate businesses Updated On : 02 Jul 2016 | 10:02 PM IST
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Business Standard
29-05-2025
- Business
- Business Standard
Parliamentary panel flags 'ambiguities' in IBC; govt mulls amendments
A parliamentary committee on Thursday flagged 'ambiguities' in the Insolvency and Bankruptcy Code (IBC), with sources stating that the government appears to be in the process of considering amendments to address concerns, according to a report in Press Trust of India. Sources said the recent Supreme Court (SC) judgement rescinding JSW Steel's resolution plan for Bhushan Power and Steel Ltd (BPSL) was also brought up in the deliberations of the Standing Committee on Finance led by Bharatiya Janata Party (BJP) MP Bhartruhari Mahtab, an order which has led to a debate over the efficiency of the insolvency mechanism in place. On Monday, the apex court put a status quo on BPSL's liquidation based on a plea by JSW Steel, as the company argued that the liquidation would be damaging to it, its lenders, and its employees. Corporate affairs secretaries and representatives of multiple banks appeared before the committee on Thursday while its members discussed the agenda of the 'review of working of the Insolvency and Bankruptcy Code and Emerging Issues.' Sources said certain committee members flagged inadequacies, such as delays in the resolution process. It was noted that the preceding panel, headed by Jayant Sinha, had also highlighted certain gaps in the law and recommended changes. The government had accommodated some of the said suggestions in an initial amendment of the law. "We believe that the government is very much in the thick of things as far as addressing the issues related to the IBC are concerned. We got the view that there may be more amendments in the offing," a source said. The source added that the IBC has, on many occasions, served the company and its creditors in distress. "Any law is a dynamic process. It evolves with time," said the source, adding that the IBC, enacted in 2016, has proved helpful in various cases. What is the Insolvency and Bankruptcy Code? Enacted in 2016, the IBC lays down a basic framework for the insolvency and bankruptcy-related resolution of individuals, partnership firms, and corporate entities. The aim of this code is to revive businesses undergoing financial distress in a timely manner, aiding creditors to recover their dues. The central goal of the IBC is the streamlining of the insolvency process, protection of interests of stakeholders involved, and ultimately enriching the efficiency of the Indian economy as a whole.
Time of India
27-05-2025
- Business
- Time of India
Lenders, JSW Steel differ over Bhushan Power funds recovery
New Delhi: Banks want compensation for wrongful losses caused to Bhushan Power and Steel (BPSL) under its former promoter Sanjay Singhal , according to people familiar with the matter. In a lawsuit filed with the National Company Law Tribunal (NCLT), banks claimed they are the rightful recipients of any recoveries realised from counterparties who benefited from wrongful transactions that resulted in losses to the company. However, JSW Steel argued before the NCLT that the monies recovered should be retained by BPSL. These transactions were identified during an audit and pertain to a period prior to commencement of BPSL's insolvency proceedings in 2017. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0.00% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like War Thunder - Register now for free and play against over 75 Million real Players War Thunder Play Now Undo BPSL's resolution professional had flagged the transactions in applications filed with the NCLT in 2019. However, the lawsuits were not seriously pursued until early 2024. The losses resulted from transactions such as undervalued sale of land, write-offs of capital advances and misreporting of stock. Recoveries from such deals are pegged at Rs 3,000 crore, said people familiar with the claims filed at the NCLT. Live Events The audit captured such transactions in four categories - preferential, undervalued, fraudulent and extortionate - and reported them to the committee of creditors during BPSL's insolvency proceedings. Those familiar with the suspect transactions said they include the sale of a land parcel in Chennai and capital advances made to suppliers that were written off by the company. The Supreme Court on May 2 struck down JSW Steel's 2019 acquisition of BPSL and ordered the company's liquidation citing various non-compliances. It subsequently asked for status quo to be maintained on its liquidation proceedings after JSW Steel approached the court seeking a pause in the liquidation, arguing it would adversely affect banks and workmen. JSW Steel did not comment on the matter. Mital & Mital advocates, who are representing the lenders, did not respond to ET's queries. According to people familiar with the matter, JSW Steel had initially made an allowance for the benefits of the recoveries to go to the banks, once they were realised by BPSL. This was clarified to the banks in a letter from JSW Steel's management in October 2018, in which the benefits were referred to as "pass through monies". However, JSW Steel had set an expiry date for the banks to avail the benefits. The steelmaker has claimed that the expiry date has lapsed and that now BPSL is the rightful beneficiary of the sums realised through the recoveries, according to the people. The banks had also claimed in an affidavit in the Supreme Court that they were entitled to compensation and interest for the delay by JSW Steel in executing the resolution plan for BPSL.
Mint
27-05-2025
- Business
- Mint
NCLT puts Bhushan Power liquidation on hold till August after SC order
The National Company Law Tribunal (NCLT) on Tuesday deferred liquidation proceedings for Bhushan Power and Steel Ltd (BPSL) till August, following a 26 May Supreme Court order directing status quo in the matter. 'In the wake of the Supreme Court order, hearing stands deferred till 1 August,' the NCLT-Delhi said. The Supreme Court on Monday granted interim relief to JSW Steel, which had sought a pause on the BPSL liquidation proceedings to file a review petition challenging the top court's 2 May verdict. That ruling quashed JSW's ₹ 19,300 crore resolution plan for the bankrupt steel company and ordered its liquidation. The Supreme Court allowed JSW to file the review petition within the statutory limitation period, noting that continuing with liquidation could jeopardise the review. Accordingly, the NCLT was directed to maintain the status quo until further orders. Meanwhile, the top court indicated that the review petition is likely to be heard after the court's summer vacation, once it is filed. The newly constituted NCLT bench—comprising Justice Ashok Kumar Bhardwaj (judicial member) and Reena Sinha Puri (technical member)—will now hear various petitions related to the case, including one filed by former promoter Sanjay Singhal, seeking enforcement of the apex court's 26 May order. The new bench took over the case after NCLT president Justice Ramalingam Sudhakar, whose bench had earlier been hearing the case, decided to reassign the matter. Mint earlier reported how, during an open court hearing, the NCLT president raised concerns about the shortage of available members to revisit such a complex, high-stakes insolvency matter—especially one that had been settled nearly five years ago. With dues exceeding ₹ 47,200 crore, BPSL was among the first 12 large loan defaulters identified by the Reserve Bank of India (RBI) in 2017 to be sold or liquidated under the Insolvency and Bankruptcy Code (IBC). JSW Steel's ₹ 19,300 crore resolution plan was approved by the NCLT in September 2019 and upheld by the National Company Law Appellate Tribunal (NCLAT) in February 2020. However, on 2 May 2025, the Supreme Court struck down the resolution plan, acting on petitions filed by Singhal and certain operational creditors. The court cited material non-compliance with key provisions of the IBC—particularly the failure to strictly implement the plan within the approved timeline—as grounds for its decision.
Hans India
27-05-2025
- Business
- Hans India
SC orders status quo on Bhushan liquidation
New Delhi: The Supreme Court on Monday ordered a status quo on the liquidation proceedings of Bhushan Power and Steel Ltd (BPSL), giving interim relief to JSW Steel. The verdict came on a plea filed by JSW Steel seeking a stay on the liquidation process initiated by BPSL's former promoter, Sanjay Singhal. JSW Steel has been allowed to file a review petition against the Supreme Court's May 2 verdict that quashed its Rs 19,300 crore resolution plan, which had come as a major setback for the Sajjan Jindal-led company. A Supreme Court bench directed the National Company Law Tribunal (NCLT) to put the matter on hold until the apex court passes a verdict on the review plea. Asking JSW Steel to file the petition within the 30-day prescribed limitation period, the apex court noted that the 'status quo needs to be maintained in the interest of justice', meaning no further action on liquidation will proceed until the review petition is resolved. Sanjay Singhal, former promoter of the BPSL, had approached the NCLT seeking liquidation based on the Supreme Court's earlier judgment. The Supreme Court's May 2 judgment came as a huge setback for JSW Steel, which acquired the BPSL through the corporate insolvency resolution process more than five years ago and has made significant investments in the company. The apex court had set aside the resolution plan on grounds of non-compliance with key provisions of the Insolvency and Bankruptcy Code (IBC), which included the failure to adhere strictly to the plan's approved timeline. BPSL's steel plant in Odisha has a capacity of 4.5 million tonnes per annum (MTPA), forming a key part of JSW Steel's total domestic capacity of 34.2 MTPA.
