Delhi High Court rejects RBI appeal against order for reconsideration of JSPL Plea for $300 million remittance to Mauritius subsidiary

The Delhi High Court dismissed an appeal by the Reserve Bank of India (RBI) against an earlier order of a Single-Judge which had directed the RBI to reconsider an application by Jindal Steel and Power Ltd (JSPL) to transmit $300 million to its wholly owned subsidiary Jindal Steel and Power (Mauritius) Ltd (JSPML). Directing the central bank to reconsider its decision on JSPL’s application, the court’s earlier order had noted that the RBI’s order dated 30.12.2019, vide which it had rejected JSPL’s application had “serious consequences” inasmuch as the “commitments undertaken abroad with the prior consent” of the RBI would go into default causing huge losses to JSPL. The judgment was passed by a Division Bench of Chief Justice DN Patel and Justice Jasmeet Singh in an appeal preferred by the RBI against the Single Judge bench remand order of Justice Jayant Nath.