NCLAT to hear JSW Steel’s immunity plea today

MUMBAI: The National Company Law Appellate Tribunal (NCLAT) will hear JSW Steel’s plea on Monday seeking immunity from criminal proceedings in a bank fraud case against Bhushan Power’s erstwhile promoter. Billionaire Sajjan Jindal-owned JSW Steel has bagged Bhushan Power through the bankruptcy process for Rs 19,700 crore. On Saturday, the Enforcement Directorate (ED) attached immovable properties worth Rs 4,025 crore of Bhushan Power under the Prevention of Money Laundering Act (PMLA).
The ED attached Bhushan Power’s assets after investigations revealed that former promoter Sanjay Singhal diverted bank loans from the steel company to various entities by creating fictitious purchase of capital goods.
However, the National Company Law Tribunal (NCLT) at the time of time of approving JSW Steel’s bid for Bhushan Power, had said that any criminal proceedings against Singhal would not impact the implementation of the metal company’s proposal. JSW Steel subsequently moved NCLAT seeking immunity from criminal proceedings in the bank fraud probe against Singhal.
After the ED attached Bhushan Power’s assets, JSW Steel in a statement said: It vindicates its stand of seeking immunity from attachment of properties of corporate debtor (Bhushan Power). “This may happen even in cases where control is changed under the bankruptcy code,” said JSW Steel’s joint MD Seshagiri Rao.