Here’s the latest on JSW Steel’s review petition over the Bhushan Power & Steel deal:
⚖️ What’s happening?
- On May 2, 2025, India’s Supreme Court revoked JSW Steel’s ₹19,300 crore (~$2.3 billion) resolution plan to acquire Bhushan Power & Steel (BPSL), citing serious procedural lapses. The court further ordered BPSL’s liquidation.
- However, on May 26, the court stayed the liquidation process after JSW and BPSL’s creditors indicated they would seek a review.
📰 Today’s development:
- June 25, 2025: JSW Steel formally filed a review petition in the Supreme Court, asking for a rehearing of the May 2 judgment nullifying the takeover plan.
- The petition emphasises that:
- The acquisition was fully executed in 2020.
- JSW Steel asserts the court’s findings on procedural violations are incorrect.
- The collapse of such a major deal is unsettling the market for distressed-asset acquisitions in India.
📌 Who else is involved?
- Lenders to BPSL—including Punjab National Bank and SBI—filed their own review petitions on June 16, echoing concerns about the stability and finality of IBC resolution plans.
- Critics warn that overturning a four‑year‑old resolution after full implementation could dampen investor appetite for India’s distressed assets .
🔍 Why it matters:
| Concern | Note |
|---|---|
| Finality of IBC resolutions | This case challenges whether once executed, resolution plans can later be invalidated—raising uncertainty for future bidders. |
| Market confidence | Legal experts suggest delays and reversals deter investment in bankrupt firms. |
| Impact on JSW | JSW Steel says operations won’t be materially affected but aims to regain control and clear its investment. |
✅ What’s next?
- The Supreme Court will decide whether to admit the review petition and set aside the May 2 verdict.
- Until the review petition is heard, liquidation of BPSL remains stayed, as directed on May 26.
- Creditors and industry watchers await the court’s response to gauge how this may reshape insolvency norms.
In short: JSW Steel has asked the Supreme Court on June 25, 2025, to reconsider its May 2 decision overturning the acquisition. The move comes amid broader unease about the stability of India’s insolvency framework.
