Supreme Court scraps JSW Steel’s bid to acquire Bhushan Power: Report

Shares of JSW Steel dropped 5 per cent after the news.

The Supreme Court of India has rejected JSW Steel’s resolution plan to acquire Bhushan Power and Steel four years after the takeover, and ordered liquidation of the debt-ridden steelmaker, CNBC-TV18 reported on Friday.

The apex court said that JSW Steel’s plan to acquire Bhushan Power was “illegal” and should not have been accepted by the latter’s committee of creditors, CNBC-TV18 reported, without providing details.

Shares of JSW Steel dropped 5 per cent after the news.

JSW Steel and Bhushan Power did not immediately respond to Reuters‘ email seeking comment.

JSW Steel was the successful resolution applicant with a ₹ 19,700 crore ($2.35 billion) bid for Bhushan Power and the acquisition was completed in 2021.

Bhushan Power owed over ₹4.7 lakh crore to financial creditors when it was short-listed by the Reserve Bank of India to be admitted under the country’s insolvency and bankruptcy code in 2017.

Punjab National Bank had initiated criminal proceedings in 2019 against the former board of directors of Bhushan Power after the lender discovered fraud amounting to 38 billion rupees in the accounts of the company.

Punjab National Bank and State Bank of India, which led the committee of creditors, also did not respond to Reuters‘ emails.

Published on May 2, 2025