Tata Steel is facing several hurdles in its attempt to take control over the Bhushan Steel Ltd (BSL), reported The Economic Times.

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Tata, the report said, is facing hurdles in taking control of the company’s main plant at Dhenkanal, Odisha.

Any development that impacts the deal will be significant as it was one of the first high profile cases to be resolved under the Insolvency and Bankruptcy Code (IBC), the report said.

According to the report, Tata officials are being intimidated by people close to the former promoter who are also visiting the facility.

There are different views about what has led to this opposition.

As per the report, sources close to the Bhushan Steel claim that the unrest arise due to fear of job loss among the workers.

"The Tatas have apparently said they would retain only BSL’s permanent employees…This has given rise to misgivings among contractual workers who play a major role in a steel plant which cannot be run by permanent employees alone,” a source was quoted saying in the report.

On the other hand, others have claimed that it was the out-of-turn promotions given to employees close to the former promoters that has led to the issue, the report said.

It is now not clear what would be the follow up actions by the involved players including the IBC.

As per the report, the authorities will have to provide support to the Tata Steel if it takes the legal route.

“In case the new owner is facing difficulty in taking over, he can file an application at the National Company Law Tribunal (NCLT). If necessary, the court can then pass an order on it, including law and order support,” Alok Dhir of Dhir & Dhir Associates was quoted saying in the report.

First Published:May 9, 2018 10:59 AM IST