JSW Steel Limited announced a legal victory as the Hon’ble Supreme Court has directed the Directorate of Enforcement (ED) to transfer control of provisionally attached properties worth ₹4,025.23 crore belonging to Bhushan Power and Steel Limited (BPSL). This development solidifies JSW Steel’s acquisition of BPSL under the Insolvency and Bankruptcy Code, 2016 (IBC).
The case stemmed from a Provisional Attachment Order (PAO) issued by the ED in 2019, which froze BPSL’s assets after allegations of financial misconduct by its erstwhile promoters. While JSW Steel had already taken control of BPSL in 2021 following its successful resolution plan, the attached assets remained a point of contention.
The Supreme Court’s order, uploaded on December 13, 2024, upheld the principles of Section 32A of the IBC, which provides immunity to corporate debtors’ assets after a resolution plan’s approval. The ruling directed the ED to release the attached assets to JSW Steel, marking the closure of a long-standing legal battle that began in 2019.
This decision reinforces the sanctity of the IBC framework and provides clarity on the protection of resolved corporate assets from enforcement actions targeting past promoters. JSW Steel, through this acquisition, has further cemented its position in the Indian steel industry.
