In a fresh twist to the insolvency proceedings of Bhushan Power and Steel, the ED has decided to continue its investigation against the company and its former promoters, sources close to the development said.
The Enforcement Directorate (ED) is also of the view that the Insolvency and Bankruptcy Code (IBC) ordinance, which ring-fenced bidders of insolvent companies from prosecution against crimes of former promoters, will apply only prospectively and not retrospectively, thereby granting no protection to Bhushan Power as a company, the sources said.
In its affidavit to be filed with the National Company Law Appellate Tribunal (NCLAT), the ED is also likely to mention that as JSW Steel and Bhushan Power had jointly bought the Rohne coal block in Jharkhand, the probe in financial irregularities of the latter would also extend to JSW Steel, said one of the sources. The NCLAT is scheduled to hear the case on Thursday. The move by ED gains significance as the NCLAT had on January 13 asked the probe agency to clarify its stand on JSW Steel’s plea that it should not be probed for the financial irregularities allegedly committed by former promoters of the company.