At the heart of India’s corporate drama, JSW Steel is now demanding a refund of Rs 19,300 crore. This follows the Supreme Court’s recent cancellation of its 2019 acquisition of Bhushan Power and Steel (BPSL).
The court found multiple compliance issues in the deal and ordered the liquidation of BPSL.
For those watching from the sidelines, what does this mean? Well, JSW Steel, one of India’s biggest steelmakers, wants its money back — pronto.
The company has sent demand notices to banks, asking them to return the upfront funds paid under its resolution plan. The refund request aligns with the Supreme Court’s ruling.
At the same time, JSW Steel wants a 60-day pause on the liquidation process while it explores legal options, possibly even asking for a review of the court’s decision.
The background to this mess is worth a quick recap. When BPSL entered insolvency, it had liabilities over Rs 45,000 crore. JSW Steel was the highest bidder in the resolution process, with a plan worth Rs 19,300 crore.
Despite ongoing legal battles — including a challenge from BPSL’s former promoter — the Committee of Creditors (CoC) accepted JSW’s payments. The National Company Law Tribunal (NCLT) and later the appellate tribunal had approved the deal, but the Supreme Court’s final word changed everything.
Also Read Supreme Court rejects JSW Steel’s resolution plan for Bhushan Power and Steel
Now, the court has ordered JSW Steel to return control of BPSL to the financial creditors and asked the CoC to refund the upfront payment. The liquidation will proceed under the supervision of the NCLT, with the CoC appointing and monitoring the liquidator.
For everyday folks, this legal back-and-forth means big companies are playing a high-stakes game.
JSW Steel’s refund demand and move to stall liquidation highlight how corporate battles often stretch on, impacting creditors, employees, and suppliers caught in the middle.
And yes, it’s a classic case of “the deal’s off, but who’s got the cheque?” The drama is as much about law and compliance as it is about money and power plays.
What’s next? JSW Steel is clearly not giving up without a fight. Expect more court filings and legal chess in the coming weeks. Meanwhile, the fate of BPSL’s Rs 45,000 crore debt hangs in the balance, affecting banks and investors alike.
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