BPSL Liquidation: Govt to Finalize Way Forward - DFS Secy

Mumbai, May 5 (PTI) The government is reviewing the Supreme Court judgement ordering liquidation of Bhushan Power and Steel (BPSL), and will "soon" finalise the way forward in the case, Department of Financial Services (DFS) Secretary M Nagaraju said on Monday.

"I have already reviewed (the order) with all the lenders. We have taken a position, we have studied the judgement, we have got our advocates' view on the judgment. Now we are taking a view in the government on how do we approach the judgement. We will finalise soon," he said.

Nagaraju also said the views of senior government advocates will be sought in the matter, adding that there is a need to take a "serious look" at the order.

An SC bench of Justice Bela Trivedi and Justice Satish Chandra Sharma had on Friday rejected JSW Steel's Rs 19,350-crore bid to acquire BPSL as it had not abided by the resolution plan for over two years, and ordered liquidation of the asset.

This was seen as a jolt to the lenders, who now stand to get a bigger haircut on their receivables, as the liquidation processes typically yield lower sums.

Government-run State Bank of India and Punjab National Bank are lead lenders on the BPSL account. Banks or JSW can file an appeal against the order.

Meanwhile, Nagaraju also said the IDBI Bank stake sale is set to be completed in the current calendar year.

He was speaking to reporters on the sidelines of the listing of the first securitisation transaction structured by RMBS (Residential Mortgage Backed Securitisation) Development Company.