NEW DELHI, Dec 14: The Enforcement Directorate (ED) has returned assets valued at Rs 4,025 crore belonging to the former Bhushan Steel and Power Limited to JSW Steel, following the Supreme Court’s approval, as stated by the federal investigation agency on Saturday.
JSW Steel emerged as the successful bidder for the assets of the insolvent company through the Insolvency and Bankruptcy Code (IBC) during the Corporate Insolvency Resolution Process (CIRP).
Prior to this transfer, these assets had been seized by the ED under the Prevention of Money Laundering Act (PMLA) as part of an inquiry into Bhushan Steel and Power and its promoters, who are accused of bank loan fraud and the “diversion” of these funds for personal investments.
The ED noted that the restitution of Rs 4,025 crore in assets was executed under Section 8(8) of the PMLA (restitution pending trial), in conjunction with Rule 3A of the PMLA Restoration of Property Rules.
The Supreme Court approved this ED request on Wednesday, according to the agency.
Regarding the interpretation of Section 32A (2) of the IBC and the ED’s authority to seize the properties of corporate debtors under CIRP or related matters, the Supreme Court has refrained from providing an opinion and has left these issues unresolved, the ED stated.
The money laundering investigation against Bhushan Steel and Power originated from a chargesheet filed against the company and its promoters by the Serious Fraud Investigation Office, which operates under the Union Ministry of Corporate Affairs.
Recently, the federal probe agency has initiated the ‘restitution of assets’ process for legitimate investors, including cases tied to the Saradha Ponzi “scam” and the alleged bank loan fraud associated with diamond merchants Nirav Modi and Mehul Choksi. (PTI)
