Govt weighs next move after SC's JSW-BPSL order

The Department of Financial Services (DFS) has reviewed the Supreme Court's (SC's) judgment on JSW Steel's acquisition of Bhushan Power & Steel (BPSL) through the insolvency process, in consultation with the lenders involved, and will now seek the government's view on how to approach the ruling and determine the next course of action, DFS Secretary M Nagaraju said on Monday in Mumbai.

- SUBRATA PANDA

"I have reviewed it with all the lenders, and we have taken a position, studied the judgment. We have got our advocate's view on the judgment. Now, we have to take the government's view on how we approach the judgment," he said while speaking to reporters on the sidelines of an event.

Last week, the apex court declared JSW Steel's resolution plan for BPSL "illegal" and ordered the latter's liquidation, four years after JSW Steel acquired the company under the Insolvency and Bankruptcy Code (IBC). The banks will have to refund the money they received from Bhushan Steel's resolution, for which they must make provisions in the current quarter.

The two-judge Bench of Justices Bela M Trivedi and Satish Chandra Sharma held that the resolution plan was "illegal" and "contrary" to the provisions of the IBC.