Supreme Court Cancels JSW Steel's ₹19,700 Crore Bid for Bhushan Power

The Supreme Court of India has quashed JSW Steel’s ₹19,700 crore acquisition of Bhushan Power and Steel Ltd (BPSL), ordering the company into liquidation due to violations in the insolvency process and non-compliance with the Insolvency and Bankruptcy Code. The court ruled that assets attached under the Prevention of Money Laundering Act cannot be overridden by insolvency tribunals, complicating asset sales and potentially deterring future resolution applicants. This decision threatens thousands of jobs, disrupts JSW Steel’s expansion strategy in Odisha, and undermines its goal of reaching a 50 MT steel capacity by 2030. The government and financial regulators are reviewing the judgment, with possible appeals from banks and regulatory bodies expected. The outcome has unsettled creditors, lenders, and other stakeholders, raising concerns about recoveries and the attractiveness of distressed asset acquisitions in India. JSW Steel is awaiting the full court order before deciding on further action.