Ruling that a change of management through insolvency does not wipe out the alleged diversion of company funds, the NCLT has held the Centre’s SFIO recovery plea against former Bhushan Power and Steel promoters maintainable.
New Delhi: The National Company Law Tribunal (NCLT), Principal Bench, has dismissed eight applications by former promoters of Bhushan Power and Steel Limited (BPSL), their associated companies and other individuals challenging the maintainability of the Central Government’s petition seeking recovery of funds allegedly diverted from the company. The petition, filed through the Serious Fraud Investigation Office (SFIO), concerns an alleged fraud of approximately Rs 5,431 crore [Union of…