Government Considers Next Steps After Supreme Court Decision

The Indian government is currently evaluating its legal options in the wake of the Supreme Court's decision to order the liquidation of Bhushan Power and Steel. This move comes after the court rejected JSW Steel's acquisition bid of Rs 19,350 crore, citing the company's failure to implement the resolution plan for over two years.

Financial Services Secretary M Nagaraju mentioned that a detailed response is being prepared, stating, "We took a position, studied the judgement, and got our advocates' view on the judgment. Now we are taking a view in government on how to approach the judgment. We will finalise soon."

Impact on Lenders and Future Steps

The ruling has significant implications for lenders, including SBI and PNB, who now face increased losses. Over 11 banks had already recovered Rs 19,300 crore from the proposed JSW deal. Macquarie suggests that JSW could file a review petition within 30 days, although such petitions are limited in scope.

Nagaraju also highlighted the ongoing IDBI Bank stake sale, affirming that the process is on track to be completed within the current calendar year.