JSW Steel maintains that its Bhushan Power & Steel Ltd (BPSL) resolution plan followed all legal requirements after the Supreme Court overturned the acquisition and ordered the company into liquidation. The Supreme Court delivered its May 2, 2025 decision which shocked the industry because JSW Steel finished its IBC acquisition of BPSL four years prior.
JSW Steel declared through a statement that it followed all legal procedures to bring BPSL back into operation. The company declared through its statement that it will explore all available legal options with its legal advisors who have evaluated the situation.
The court has instructed all creditors to return their investments to JSW Steel including the equity funds they used to revive BPSL. The company did not include any provisions for BPSL’s net assets worth ₹14,091 crore in its FY25 results because these assets appear in its consolidated books as of March 31, 2025.
JSW Steel performed a recoverability assessment through court orders and legal opinions and an escrow agreement with the Committee of Creditors. The recoverable amount remains sufficient according to the company so no provisions are required.
BPSL generated ₹21,440 crore in revenue during FY25 and achieved a profit after tax of ₹260 crore which demonstrates operational stability despite ongoing legal challenges. The company maintains its confidence about this strategic acquisition despite current legal battles.
