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The auction process for debt ridden Bhushan Power has been compromised- Tata Steel

New Delhi: The auction process for debt ridden Bhushan Power has been compromised, Tata Steel said on Thursday, making its first public comment on the bidding race where it was overtaken by JSW Steel even after being declared as the highest bidder by the company's Committee of Creditors.

"If the (resolution) process has been defined everybody should follow it. Our appeal is that the process has been compromised," T V Narendran Global CEO & MD, Tata Steel said. He was speaking to reporters on the sidelines of the Indian Steel Association Steel Conclave. 

"We don't have a problem with Liberty or JSW Steel but there was a last day of bidding. In the case of Electrosteel we had bid and didn't get it but we respected that decision," he added.

Earlier this month, more than two thirds of Bhushan Power lenders voted in favour of a revised offer by JSW Steel.

When asked whether he was disappointed with the turn of events, Narendran said:"It is not over yet." Responding to a query on whether Tata Steel would still be interested in acquiring the company, he said ".(yes)..but at the price we had bid."

Tata Steel had put in a bid of Rs 17,000 crore for Bhushan Power ahead of JSW Steel which bid 11,000 crore. Following this, the CoC declared Tata Steel as the highest bidder. However, JSW Steel put in a revised bid of Rs 18,000 crore. Tatas too put in revised bid.

Liberty House entered the fray and put a bid for Rs 18,000 crore. Even as the Tatas challenged it, JSW Steel jumped back into the fray with a much improved offer of Rs 19,500 crore. 

On receiving JSW Steel offer lenders decided to invite all three applicants to submit a revised bid. In response to this, Tata's moved the NCLAT -National Company Law Appelate Tribunal - which permitted lenders to accept revised bids. Tata's moved the Supreme Court against the NCLAT order, who also refused to stay the order.

Bhushan Power faces claims of nearly Rs 49,200 crore from financial creditors.