SBI chief to ED/CBI: Keep off IBC cases, chase promoters

Speaking a day after NCLAT asked the ED to release the attached properties of Bhushan Power & Steel which is being taken over by JSW Steel, Kumar asserted the lenders’ first right of taking charge of an asset of its bank-financed and said no one should dispute the same.

“Any action which ED or any other central authority has to take, they can take with the existing promoters and attach their personal assets leaving their companies away,” he said. Kumar said the agencies should follow this rule especially in case of companies which are undergoing bankruptcy process, as new suitors are “not fools” to risk their money.

“The person acquiring a company cannot be subjected to any harassment by any agencies and I am sure that will be guaranteed now,” Kumar said, adding as per the spirit of the bankruptcy code, an acquirer needs a “clean asset”.

It can be noted that over the weekend ED had attached assets worth Rs 4,025 crore while probing money laundering linked to an alleged bank loan fraud against the BPSL promoters. This was challenged by JSW Steel at the NCLAT, which on Monday had slammed the ED, saying the bankruptcy code would fail if the agency functioned like this and ordered the property be released.