RBI likely to challenge Gujarat HC order
Mumbai, July 5:
In a move that could impede the Reserve Bank of Indias efforts to clean up the bad assets in the banking system, the Gujarat High Court has stayed further proceedings by the National Company Law Tribunal on the insolvency petition filed by the lenders against Essar Steel.
Though the stay is only relevant for Essar Steel, and that too till the courts next hearing on July 7, the other 11 companies named by the central bank under the Insolvency and Bankruptcy Code may take similar recourse if proceedings at the Tribunal are not allowed to continue by the High Court.
Arbitrary distinction
Essar Steel had moved the Gujarat High Court claiming that the RBIs decision to …
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