Delhi High Court Clears Money Laundering Case Against Bhushan Power and Steel Ltd.

The Delhi High Court has dismissed money laundering charges against Bhushan Power and Steel Ltd. (BPSL), now owned by JSW Steel, citing a successful resolution under the Insolvency and Bankruptcy Code. However, former company officers will still face prosecution for the alleged bank fraud.

The Delhi High Court has overturned money laundering charges against Bhushan Power and Steel Ltd. (BPSL), now under the ownership of JSW Steel, following its successful resolution process through the Insolvency and Bankruptcy Code.

Justice Manmeet P S Arora noted that the offences cited were committed before the initiation of insolvency proceedings. Therefore, prosecuting the company post-resolution was unwarranted.

Nonetheless, individuals involved in the company's prior management remain subject to prosecution, as ruled by the court. The case traces back to a 2020 Enforcement Directorate complaint alleging a Rs 47,204 crore bank fraud.

(With inputs from agencies.)