The Enforcement Directorate (ED) has restituted assets worth ₹4,025 crore of the erstwhile Bhushan Steel and Power Limited to JSW Steel following approval from the Supreme Court, as announced by the federal probe agency on December 14, 2024.
JSW Steel emerged as the successful resolution applicant for the assets of the insolvent company under the Insolvency and Bankruptcy Code (IBC) within the framework of the Corporate Insolvency Resolution Process (CIRP).
The assets were initially attached by the ED under the provisions of the Prevention of Money Laundering Act (PMLA) as part of an investigation against Bhushan Steel and Power, along with its promoters, on charges involving alleged bank loan fraud and the “diversion” of funds for personal investments.
According to the ED, the restitution of the assets valued at ₹4,025 crore was conducted 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 proposal on December 11, 2024.
The agency further noted, “On the issues of interpretation of Section 32A (2) of the IBC, the powers of the ED to attach property of corporate debtors under CIRP, or any other connected issues, the Supreme Court has not expressed any opinion and left the issues open.”
The money laundering case against Bhushan Steel and Power originates from a chargesheet filed by the Serious Fraud Investigation Office, which operates under the Union Ministry of Corporate Affairs. Recently, the ED has initiated the ‘restitution of assets’ process for genuine or rightful investors, which includes cases such as the Saradha Ponzi “scam” and alleged bank loan fraud linked to diamantaires Nirav Modi and Mehul Choksi.