Bhushan Power Promoters Lose Challenge To ₹5,431 Crore Recovery Plea
What Happened
The National Company Law Tribunal has rejected eight applications filed by former promoters and other respondents challenging the maintainability of the Centre’s petition seeking recovery of ₹5,431 crore allegedly diverted from Bhushan Power & Steel Ltd. The proceedings were brought through the Serious Fraud Investigation Office. The tribunal held that completion of Bhushan Power & Steel’s insolvency resolution and replacement of its management do not prevent proceedings against former promoters or others allegedly retaining diverted funds.
Key Takeaways
The ruling only allows the ₹5,431 crore recovery case to proceed. The NCLT explicitly said it has not ruled on whether the underlying fraud allegations are true, which will be decided separately.