The ED had previously attached Bhushan Power’s assets under Section 5 of the Prevention of Money Laundering Act, 2002 (PMLA) because the former promoters of BPSL were accused of defrauding banks and diverting funds for personal gains.
The Committee of Creditors (CoC) challenged the ED attachment during the corporate insolvency resolution process (CIRP), claiming it violated IBC protections.
The ED, in turn, opposed JSW Steel’s resolution plan, arguing that the assets attached under PMLA were tainted.
However, the ED later withdrew its challenge citing Section 32A of IBC.
