SBI invokes personal guarantees of Bhushan Power & Steel promoter

Action against Sanjay Singal comes within days of the Finance Ministry asking banks to invoke personal guarantees in all insolvency cases

State Bank of India (SBI) has invoked the personal guarantees of Sanjay Singal, promoter of Bhushan Power & Steel, after the company defaulted on loans worth Rs 48,000 crore to a consortium of banks.

The resolution plan for the debt-ridden company is almost ready, with JSW Steel declared the highest bidder for its Rs 19,700-crore offer. The matter is pending in the Supreme Court, which is expected to announce its verdict in two weeks.

In a notice to Singal, SBI said its loans of Rs 12,276 crore had been unpaid since 2017, and as no security was provided by the guarantor (Singal),