ED Restores Rs 4,025 Crore Assets to JSW Under Corporate Resolution

In a notable move, the Enforcement Directorate (ED) has reverted ₹4,025-crore worth of properties to JSW Steel after the latter emerged as the resolution applicant for the erstwhile Bhushan Power and Steel Ltd (BPSL). The restitution follows a corporate insolvency resolution process under the IBC.

The Enforcement Directorate (ED) seized land, buildings, and machinery in connection with a money laundering investigation implicating the previous proprietors of BPSL. These individuals were charged with deceiving banks and diverting ₹47,204 crore in 2019. The inquiry commenced under the Prevention of Money Laundering Act (PMLA) subsequent to a CBI FIR. Further investigations disclosed that the owners manipulated financial records to distort expenses and procurement activities.

Funds were routed through shell companies with dummy directors, enabling private investments in shares and immovable properties. After this, the ED arrested promoter Sanjay Singal in November 2019 and filed a chargesheet in January 2020.

Despite the special court taking cognisance of the case, the trial has been delayed for over four years due to repeated adjournments by the accused. Meanwhile, the ED has also attached assets worth ₹427 crore held by shell companies associated with the accused. A supplementary chargesheet is expected soon.

JSW Steel had bid ₹19,350 crore for BPSL’s assets under the IBC process, significantly lower than the outstanding loans of ₹47,204 crore. Seeking resolution, the ED filed an affidavit with the Supreme Court, urging the apex court to direct the transfer of attached assets to JSW as restitution under the PMLA. On December 11, the Supreme Court accepted the plea, enabling the asset transfer.

This decision marks a major step in resolving corporate fraud cases, reinforcing confidence in India’s insolvency and legal systems.