Overview

• The Supreme Court quashed JSW Steel's resolution plan for Bhushan Power & Steel Ltd (BPSL), citing procedural violations and misuse of the insolvency process.
• Banks now face potential losses on ₹31,300 crore of exposure, with recoveries under the scrapped resolution plan previously estimated at ₹12,400 crore.
• The court criticized all stakeholders, including JSW Steel, the Committee of Creditors, and the resolution professional, for failing to comply with mandatory regulations.
• The Department of Financial Services and JSW Steel are reviewing legal options, with JSW considering a possible review petition to salvage the deal.
• Industry concerns grow over the ruling's impact on the confidence and stability of India's insolvency framework, potentially deterring future bidders.