Back to square one: NCLAT asks for fresh bids for Bhushan Power & Steel

1. Haryana - 28.7 percent (Image: Reuters)

The auction of Bhushan Power & Steel is back to square one, with the National Company Law Appellate Tribunal on Wednesday asking the company's lenders to invite fresh bids.

The tribunal has set a deadline of Monday, August 6 for the submission of the fresh bids. The next hearing will be on August 17.

In a setback for Tata Steel, the tribunal also stayed the voting on the steelmaker's bid that was supposed to be done by the lenders on Thursday.

The lenders had earlier this week selected Tata Steel as the highest bidder. "The tribunal has termed it null and void," said an executive who attended the hearing held in Delhi.

JSW Steel and Liberty House are the other two bidders.

A twist

Over the past week, the auction of Bhushan Power & Steel has taken a new turn, with JSW Steel submitting a revised bid.

The Sajjan Jindal-led company had till then taken a backseat, even as the lenders chose Tata Steel's bid as the preferred one, and amid a late entry by Liberty House.

While Liberty House has offered to make an upfront payment of Rs 18,500 crore to the lenders, Tata Steel had offered Rs 17,000 crore.

In the last week's revised bid, JSW Steel increased its earlier offer of Rs 11,000 crore, with a new one of over Rs 18,500 crore.

Bhushan Power & Steel owes banks about Rs 45,000 crore.