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3w ago

Supreme Court Liquidation Order for BPSL Triggers Legal Challenges and Protests

Public sector lenders plan review petitions, while over 3,000 protest in Odisha over job losses and economic concerns.

Thousands Protest Against Supreme Court’s BPSL Liquidation Order Amid Fears Of Livelihood Loss
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Overview

  • The Supreme Court annulled JSW Steel’s ₹19,700 crore resolution plan for Bhushan Power and Steel Ltd (BPSL) and ordered its liquidation, citing violations of insolvency regulations.
  • Public sector banks, led by Punjab National Bank, are preparing to file review petitions seeking a stay on the liquidation order, with the Committee of Creditors meeting soon to finalize their legal strategy.
  • The Department of Financial Services is reviewing the judgment and formulating the government’s response to protect public funds and address banking sector exposure exceeding ₹30,000 crore.
  • Protests involving over 3,000 individuals erupted in Jharsuguda, Odisha, as employees, contractors, and local stakeholders expressed fears over job losses and regional economic fallout.
  • JSW Steel, which acquired BPSL in 2021 under the Insolvency and Bankruptcy Code, may pursue legal options to recover its investment or mitigate financial losses.