JSW Steel wins appeal, with the Supreme Court ordering the restoration of properties previously attached.

The Enforcement Directorate (ED) attached Bhushan Power’s assets under the Prevention of Money Laundering Act (PMLA) due to alleged fraud and money laundering by the company’s promoters. The Committee of Creditors (CoC) challenged the attachment during the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code (IBC), claiming it violated IBC protections. The National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) approved JSW Steel’s resolution plan, vacating the ED’s attachment. The ED appealed to the Supreme Court, opposing the plan and claiming that the benefit of Section 32A of the IBC would not apply. In December, the ED filed an affidavit stating that, without prejudice to its rights, it would allow JSW Steel to take control of the attached properties. The Supreme Court granted permission, directing the ED to hand over control of the properties to JSW Steel. The case involves a complex interplay between insolvency proceedings under the IBC and asset attachment under the PMLA.