MUMBAI/NEW DELHI: Private power companies defaulting on an estimated Rs 1.7 lakh crore loans to 34 projects ran out of time to avoid insolvency proceedings on Monday, with the Allahabad high court refusing to grant interim relief.
The court’s decision leaves no other option for lenders but to initiate insolvency proceedings according to the Reserve Bank of India’s directive to banks to initiate insolvency proceedings against defaulters if a resolution plan was not finalised within six months.
According to SBI chairman Rajnish Kumar, neither the court decision nor the expiry of the RBI deadline will have any impact on the bank’s bottomline. “Unlike the NCLT-1 and NCLT-2 list of companies, which was given by the RBI, there is no ad…
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