Over seven years after Bhushan Power and Steel Ltd was first pushed into insolvency court as part of the Reserve Bank of India’s original ‘dirty dozen’, its long and chequered revival story has ended in liquidation, for now. The Supreme Court has pulled the plug on the sale of BPSL to JSW Steel, declaring the deal so riddled with legal and procedural lapses that it must be undone. The verdict calls out not just JSW, but also the lenders and resolution professional, for pushing through a process the court says was riddled with fraud.The situation is messy. A marquee company like JSW Steel now finds its reputation under a cloud. Lenders could have to return about ₹197 billion they had already pocketed. And an operational steel unit, once celebrated as a rare Insolvency and Bankruptcy Code success story, could be headed for the scrap heap.
.png)
