>Rsjaffe: clean up

2021-06-27T01:10:19Z

clean up

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{{short description|Indian steel company}}
{{Infobox company
| name = Bhushan Power & Steel Limited
| logo =
| type = Private
| industry = [[Steel]]
| fate =
| predecessor = 
| successor = 
| founded = 1970
| founder = 
| defunct = 
| hq_location_city = [[New Delhi]]
| hq_location_country = [[India]]
| area_served = 
| products =
| owner = [[Sajjan Jindal]]
| num_employees =
| num_employees_year = 
| parent = [[JSW Steel Ltd|JSW Steel]]
| website = https://www.jsw.in/steel
}}
'''Bhushan Power & Steel Limited''' (BPSL) is a [[steel company]] that is engaged in the manufacturing and marketing of steel products.<ref name=financialexpress/> It was established in 1970. In July 2019, BPSL was allegedly involved in fraud worth ₹3805.15 crore rupees (US$535.23 million),<ref>{{Cite web|url=https://www.xe.com/currencyconverter/convert/?Amount=38,051,500,000&From=INR&To=USD|title=38051500000 INR to USD {{!}} Convert Indian Rupees to US Dollars {{!}} XE|website=www.xe.com|access-date=2019-10-19}}</ref> as detected by [[Punjab National Bank]].<ref>{{cite news |title=PNB plunges over 8% after detection of Rs 3,800 crore fraud |url=https://www.businesstoday.in/markets/company-stock/pnb-plunges-over-8-after-detection-of-rs-3800-crore-fraud/story/362531.html |publisher=[[Business Today (India)|Business Today]] |date=July 8, 2019}}</ref><ref>{{cite news |title=PNB detects Rs 3,805-crore fraud by Bhushan Power & Steel; accuses the firm of misappropriating funds, manipulating books |url=https://www.businesstoday.in/sectors/banks/pnb-detects-rs-3800-crore-fraud-by-bhushan-power--steel-accuses-the-firm-of-misappropriating-funds-manipulating-books/story/362263.html |publisher=[[Business Today (India)|Business Today]] |date=July 7, 2019}}</ref> It is one of India's most indebted companies and appears among the 12 companies referred by the [[Reserve Bank of India]] (RBI) to a bankruptcy court for the purpose of debt resolution.<ref>{{cite news |last1=Mehta |first1=Sangita |title=Bhushan Power: Tata Steel gives a revised bid for Bhushan Power, lenders to meet on Tuesday |url=https://economictimes.indiatimes.com/industry/indl-goods/svs/steel/tata-steel-gives-a-revised-bid-for-bhushan-power-lenders-to-meet-on-tuesday/articleshow/65391277.cms?from=mdr |publisher=[[The Economic Times]] |date=August 13, 2018}}</ref><ref name=financialexpress>{{cite news |last1=Srivastava |first1=Pragya |title=India's Bad Loans: Here is the list of 12 companies constituting 25% of total NPAs |url=https://www.financialexpress.com/industry/banking-finance/indias-bad-loans-here-is-the-list-of-12-companies-constituting-25-of-total-npa/903396/ |publisher=[[The Financial Express (India)]] |date=October 23, 2017}}</ref>

== History ==
Bhushan Power & Steel was founded in 1970, incorporated in 1999 and registered with the [[Registrar of Companies]] in Delhi. The company established its facility in Chandigarh in 1973 to manufacture Tor steel and wire rod. It has 7 manufacturing facilities in India.<ref>{{cite news |title=Everything You Need To Know About Bhushan Power And Steel |url=https://www.businessinsider.in/everything-you-need-to-know-about-bhushan-power-and-steel/articleshow/70127615.cms |publisher=[[Business Insider]] |date=July 7, 2019}}</ref> The company was promoted by Sanjay Singal.<ref>{{cite news |last1=Raghunathan |first1=Anuradha |title=Why Two Bhushan Steels |url=https://www.forbes.com/global/2010/0607/companies-bhushan-steel-automobiles-india-why-two.html#9da0e061d26d |work=[[Forbes]] |date=Jun 7, 2010}}</ref><ref>{{cite news |last1=Karmali |first1=Naazneen |title=Steel Tycoon Sanjay Singal Is India's Newest Billionaire |url=https://www.forbes.com/sites/naazneenkarmali/2014/05/13/steel-tycoon-sanjay-singal-is-indias-newest-billionaire/#130a7b161e7a |work=[[Forbes]] |date=May 13, 2014}}</ref>

Bhushan Power & Steel was acquired by [[JSW Steel]] in September 2019.<ref>{{cite news |last1=Mazumdar |first1=Rakhi |last2=Das |first2=Saikat |title=JSW Steel set to acquire Bhushan Power |url=https://economictimes.indiatimes.com/industry/indl-goods/svs/steel/jsw-steel-set-to-acquire-bhushan-power/articleshow/67971304.cms?from=mdr |publisher=[[The Economic Times]] |date=February 13, 2019}}</ref><ref>{{cite news |last1=Iyengar |first1=Suresh P |title=Scam may delay JSW's buy of Bhushan Power |url=https://www.thehindubusinessline.com/companies/fresh-scam-at-pnb-may-delay-bhushan-power-resolution/article28323110.ece |publisher=[[Business Today (India)|Business Today]] |date=July 8, 2019}}</ref> [[JSW Steel]]'s offer of Rs. 19,700 crores was approved by [[NCLT]].<ref>{{Cite web|url=https://www.livemint.com/industry/manufacturing/jsw-snaps-up-second-stressed-steel-asset-with-bhushan-power-win-1567677583146.html|title=NCLT approves JSW Steel's ₹19,700 crore bid for Bhushan Power & Steel|date=2019-09-05|website=Livemint|language=en|access-date=2020-04-19}}</ref>

The [[Enforcement Directorate]] (ED) had attached assets worth Rs 4,025 crore of BPSL in October 2019 regarding the ongoing probe.<ref>{{Cite news|url=https://www.tribuneindia.com/news/nation/ed-attaches-rs-4-000-cr-assets-of-bhushan-steel/846438.html|title=ED attaches Rs 4,000 cr assets of Bhushan Steel|work=The Tribune India}}</ref> The [[National Company Law Appellate Tribunal]] (NCLAT) put a stay order, and the Ministry of Corporate Affairs stated in the proceedings that the ED did not have the jurisdiction to attach assets in an insolvency process.<ref>{{Cite news|url=https://www.business-standard.com/article/pti-stories/nclat-asks-ed-to-release-bspl-assets-stays-rs-19-700-cr-sale-to-jsw-steel-119101400410_1.html|title=NCLAT halts Bhushan Power sale to JSW Steel; asks ED to release BSPL assets|work=Business Standard}}</ref> The ED is seeking a legal opinion to take the case before the Supreme Court against the order of NCLAT.<ref>{{Cite news|url=https://www.businesstoday.in/current/corporate/ed-may-move-supreme-court-against-nclat-order-on-bhushan-power-attached-properties/story/385207.html|title=ED may move Supreme Court against NCLAT order on Bhushan Power's attached properties|work=Business Today}}</ref>

== Fraud cases==
In April 2019, the [[Central Bureau of Investigation]] accused the company of taking a loan of {{INRConvert|47000|c|0}} from various banks including [[Punjab National Bank]] ([[New Delhi]] and [[Chandigarh]]), [[Oriental Bank of Commerce]] ([[Kolkata]]), [[IDBI Bank]] ([[Kolkata]]) and [[UCO Bank]] ([[Kolkata]]), which later turned into non-profitable assets. The case is under investigation by the Central Bureau of Investigation.<ref>{{cite news|url=https://www.indiatoday.in/india/story/look-out-circular-issued-against-chief-of-bhushan-power-steel-company-his-wife-1509580-2019-04-25|title=Look out circular issued against chief of Bhushan Power & Steel company, his wife|last1=Pandey|first1=Munish|date=April 25, 2019|publisher=[[India Today]]}}</ref>

More banks followed suit in revealing financial misdealing. On July 6, 2019, Bhushan Power and Steel Limited was accused of committing another fraud of ₹3805.15 crore rupees (US$535.23 million) from [[Punjab National Bank]].<ref>{{cite news |last1=Pokharel |first1=Krishna |title=Indian Bank Defrauded by Another Borrower |url=https://www.wsj.com/articles/indian-bank-defrauded-by-another-borrower-11562516040 |publisher=[[The Wall Street Journal]] |date=July 7, 2019}}</ref><ref>{{cite news |last1=Rajput |first1=Rashmi |title=Bhushan Steel turns into a case bigger than anything Indian courts have ever seen |url=https://economictimes.indiatimes.com/industry/indl-goods/svs/steel/bhushan-steel-case-70k-page-chargesheet-presents-a-mammoth-challenge-for-court/articleshow/70151597.cms |publisher=[[The Economic Times]] |date=July 10, 2019}}</ref> On July 13, 2019, [[Allahabad Bank]] disclosed that it had detected a fraud of {{INRConvert|1774.82|c|0}} by BPSL.<ref>{{cite news |title=Allahabad Bank defrauded of Rs 17,775 crore by Bhushan Power & Steel |url=https://www.indiatoday.in/business/story/allahabad-bank-defrauded-of-rs-17-775-crore-by-bhushan-power-steel-1568419-2019-07-13 |publisher=[[India Today]] |date=July 13, 2019}}</ref> On July 16, 2019, [[Punjab & Sind Bank]] (PSB) reported a {{INRConvert|238|c|0}} fraud by BPSL.<ref>{{cite news |title=Punjab & Sind Bank flags fraud in Bhushan Power account |url=https://www.livemint.com/companies/news/punjab-sind-bank-flags-fraud-in-bhushan-power-account-1563371557452.html |publisher=[[Livemint]] |date=17 July 2019}}</ref>

On 26 March 2021, [[JSW Steel]] announced that it had paid {{INRConvert|19350|c}} to the financial creditors of Bhushan Power & Steel as part of a resolution plan for acquiring the company.<ref>{{cite web |title=JSW Steel Completes BPSL Buy, Gets The Crown In Indian Steel Industry |url=https://www.moneycontrol.com/news/business/companies/jsw-steel-completes-bpsl-buy-gets-the-crown-in-indian-steel-industry-6698551.html |website=Moneycontrol |access-date=26 March 2021}}</ref>

==References==
{{Reflist|30em}}
{{Steel industry of India}}
{{JSW Group}}

{{DEFAULTSORT:Bhushan Power and Steel Limited}}
[[Category:Steel companies of India]]
[[Category:Companies based in New Delhi]]
[[Category:Manufacturing companies based in Delhi]]
[[Category:Manufacturing companies established in 1970]]
[[Category:Insolvent companies]]
[[Category:Indian companies established in 1970]]
[[Category:1970 establishments in Delhi]]

Bhushan Power & Steel - Revision history

>Rsjaffe: clean up