JSW Steel on Monday told the National Company Law Tribunal that the company is not backing out from the ongoing resolution process of Bhushan Power & Steel despite reports of alleged fraud by its former promoters.15 crore by BPSL by misappropriating bank funds and manipulating its books of accounts.Last week, state-owned lender Allahabad Bank had reported fraud of over Rs 1,774 crore by BPSL to the Reserve Bank of India.NCLT has to take a decision over the lenders&hexagonal nuts39; approval of the resolution plan of JSW Steel for BPSL.The NCLAT had said the CoC decision was well within its rights to negotiate better terms with resolution applicants and has had asked NCLT to decide over JSW Steel's bid by March 31, 2019.
According to the CBI, BPSL diverted around Rs 2,348 crore through its directors and staff from the loan accounts of PNB, Oriental Bank of Commerce, IDBI Bank and UCO Bank into the accounts of more than 200 shell companies without any obvious purpose.Around 85 per cent of PNB's Rs 4,399 crore exposure to the company had been siphoned off.However, the judgement is still pending before the Principal bench of NCLT.NCLT said that alleged fraud reports will not have any impact # on the insolvency resolution process and JSW's resolution plan for BPSL.NCLT said that alleged fraud reports will not have any impact on the insolvency resolution process and JSW's resolution plan for BPSL.
