Tata Steel's Bhushan Steel acquisition hits NCLAT hurdle, may get costlier

NCLAT also admits L&T's petition seeking Rs 9 bn from Bhushan Steel

Tata Steel’s acquisition of Bhushan Steel may hit a hurdle as the National Company Law Appellate Tribunal (NCLAT) will re-examine Tata Steel’s eligibility as a bidder. Besides, the NCLAT has also admitted a petition by operational creditor, Larsen & Toubro (L&T) which has sought Rs 9 billion from Bhushan Steel.

If the NCLAT or the Supreme Court when appealed, gives any order which goes against Tata’s acquisition, then it could mean increased acquisition cost for Tata Steel which has already paid Rs 352 billion to the banks, said lawyers. 

When contacted, a Tata Steel spokesperson declined to comment.

In May