For Defaulter Bhushan Power, Fraud Charges by PNB, Allahabad Bank Couldn’t Have Come at a Worse Time


For Defaulter Bhushan Power, Fraud Charges by PNB, Allahabad Bank Couldn’t Have Come at a Worse Time

The resolution of yet another mega corporate loan defaulter, Bhushan Power & Steel Ltd (BPSL), is in doldrums and it is entirely possible that the panoply of lenders, which was hopeful of getting back at least a part of their money sunk in this steel maker, may remain empty handed.

BPSL is one of the dirty dozen, a list of 12 large corporate defaulters which had earlier been identified for quick resolution by the government under the Corporate Insolvency and Resolution Process (CIRP); it owed lenders about Rs 47,000 crore.

But neither has the CIRP process been as successful as the government may have liked, nor is this particular case getting resolved anytime soon. Only three of the dirty dozen defaulting companies have been sold till date, others have either been liquidated or continue to await resolution.

As for BPSL, fresh allegations of borrowing fraud by two of the lenders, leveled earlier this month, are almost certainly going to hamper resolution. Read More

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