Centre reviewing SC verdict on JSW Steel’s ₹19,700 crore Bhushan Power resolution plan

The Centre is closely reviewing the Supreme Court’s recent verdict that nullified JSW Steel’s ₹19,700 crore resolution plan for Bhushan Power and Steel Ltd (BPSL), and will soon finalise its official stance, the Department of Financial Services (DFS) said on Monday, according to a Reuters report.

DFS Secretary M Nagaraju reportedly said the government has already discussed the verdict with all lenders involved and sought legal opinions. “We have taken a position, we have studied the judgment, we have got our advocates’ view on the judgment,” Nagaraju said. “Now we are taking a view in the government on how we approach the judgment. We will finalise soon.”

The Supreme Court, in a verdict delivered on April 2, quashed the resolution plan that had been previously approved by the Committee of Creditors (CoC), the National Company Law Tribunal (NCLT), and the National Company Law Appellate Tribunal (NCLAT). The top court ruled that the resolution plan failed to comply with sections 30(2) and 31(2) of the Insolvency and Bankruptcy Code (IBC), and ordered the liquidation of BPSL under Article 142 of the Constitution, invoking the court’s extraordinary powers.

The decision marks a dramatic reversal for JSW Steel, which had acquired BPSL in March 2021 under the IBC framework. The acquisition was a major milestone for JSW, granting it significant manufacturing capacity in Odisha and expanding its eastern India footprint. With the Supreme Court’s latest intervention, the future of BPSL and the claims of its creditors have been thrown into disarray.

JSW Steel, for its part, has stated it is currently reviewing the Supreme Court order before deciding on its next steps.