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JSW Steel-BPSL Case | DFS Secretary says Centre reviewing Supreme Court order, exploring legal optionsBrokerages CLSA, Nuvama, Equirus on Monday turned bearish on the JSW Steel stock after the Supreme Court quashed its resolution plan.By Sapna Das   May 6, 2025, 11:43:45 AM IST (Updated)2 Min ReadThe Centre is taking stock on how it should approach the Supreme Court's recent order on the JSW-Steel-Bhushan Power and Steel case, Department of Financial Services (DFS) secretary M Nagaraju said.

He said the government has already reviewed the order with all lenders and taken a position after getting the view of its advocates.

"We are taking a view in the government on how we should approach the judgment," the DFS secretary said, adding that the decision will be finalised soon.

On another note, Punjab National Bank (PNB), State Bank of India (SBI) are likely to file a review petition in the Supreme Court regarding the case, people in the know told CNBC-TV18.

The Indian Overseas Bank said discussions on the review petition have been on for the last few days and the action plan will be finalised in the next few days. The lender said all options are on the table and nothing has been decided yet. It said its balance sheet is strong enough even if it has to make provisions with regards to BSPL/JSW Steel.

The lender had recovered ₹790 crore from the BPSL resolution.

Last week, the Supreme Court termed JSW Steel's six-year old Bhushan Power and Steel Ltd (BSPL) resolution plan as "illegal".

In 2021, JSW Steel acquired a 49% stake in Bhushan Power and Steel (BPSL) via the insolvency and bankruptcy process, getting a 2.75 MTPA steel-making capacity in Odisha. By October 2021, JSW Steel increased its stake to 83%.

The Supreme Court cited two grounds for striking down JSW Steel's plan and directed the liquidation of Bhushan Power and Steel. Those included JSW Steel completing the takeover only via equity instead of with a mix of equity and optionally convertible debentures, along with failure to complete the resolution plan within the prescribed timeline.

Brokerages CLSA, Nuvama, Equirus on Monday turned bearish on the JSW Steel stock after the Supreme Court quashed its resolution plan.

JSW Steel shares were trading with gains after four days, up 0.8% at ₹963.9 apiece at 9.35 am.

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