Bhushan Power resolution plan is likely to be finalised this month

Mahender Khandelwal said that he had already informed in the meetings of Committee of Creditors of Bhushan Power & Steel Ltd and Educomp Solutions Ltd that he had resigned from the partnership in BDO

The resolution plan for Bhushan Power and Steel, facing insolvency proceedings, is likely to be finalised this month, the IRP for the firm Mahender Kumar Khandelwal said on Tuesday.

His comments come amid the Indian arm of Belgium-headquartered accounting and advisory firm approaching the Bombay High Court to initiate arbitration proceedings against Khandelwal, who quit BDO India as partner in January to join rival PwC.

"Resolution plans for Bhushan Power & Steel Ltd are already in the process and the same are likely to be finalised within March 2018," Khandelwal said.

He is the interim resolution professional (IRP) for the company.

In an e-mail response to PTI, BDO LLP managing partner Milind Kothari said: "While the issues for which we have filed a plea for restraint against Mr Mahender Khandelwal remain sub-judice, I would say that the core reason for us to move the Court was that Mr Khandelwals intended exit would have greatly upset the mandate as a Resolution Professional of Bhushan Power & Steel Ltd and Educomp Solutions Ltd."

He further said: "We had to stick our neck out and confront Mr Khandelwal in this regard as his intention was to relieve himself of his obligation to the Firm without notice."

Khandelwal said however that the company "has gone to the court to tarnish our reputation as Insolvency professionals because we are joining rival firm PwC. They are scared that they will not be able to establish themselves in IBC practice and hence jealous of our resolutions in progress".

He said he did not want to comment further on the matter as it was sub-judice before the High Court of Bombay.

"We wish to state that the current dispute has no bearing on the ongoing assignments being carried out by us, he added.

Khandelwal further said that he had already informed in the meetings of Committee of Creditors of Bhushan Power & Steel Ltd and Educomp Solutions Ltd that he had resigned from the partnership in BDO.

"I have also assured the lenders that I will complete the assignments of Bhushan Power & Steel Ltd, and Educomp Solutions Ltd," Khandelwal said.

He is also the resolution professional of Educomp.

"In fact, Educomp Solutions Ltd assignment period is already over and the resolution plan is in the process of being submitted to NCLT," he said.

Bhushan Power and Steel, which owes about Rs 450 billion to lenders, is among the 12 non-performing accounts referred by RBI for NCLT proceedings.

The Committee of Creditors had earlier rejected the bid of UK-based Liberty House to acquire Bhushan Power and Steel Ltd, leaving Tata Steel and JSW Steel in the race for taking over the assets of the bankrupt firm.

Hit by rejection of its bid to acquire Bhushan Power and Steel, UK-based Liberty House later moved NCLT to direct creditors and resolution professional to consider its offer.