India's Supreme Court exposed the legal risks of doing business in the country with a stunning decision to strike down the Rs193.5bn (US$2.3bn) acquisition of Bhushan Power and Steel out of insolvency proceedings by JSW Steel more than four years after the buyout was completed. Instead, the court on May 2 ordered Bhushan to be liquidated, arguing that JSW Steel's resolution plan was not in compliance with the law. JSW Steel had pledged to inject Rs85.5bn of equity into the struggling steelmaker, making it the top bidder, but it only contributed Rs1bn in share capital after winning the bid and issued Rs84.5bn of compulsory convertible bonds to the entity that merged with Bhushan Steel to make up the difference, the Supreme Court said. JSW Steel also missed the deadlines for upfront payments to financial and operational creditors by 540 and 900 days beyond the agreed 30 days, according to the court. Stressed asset experts said the ruling was a huge setback for dealmaking in India.