Banks have to mark IL&FS accounts as NPAs after default: RBI to NCLAT
5 years, 8 months ago

Banks have to mark IL&FS accounts as NPAs after default: RBI to NCLAT

India TV News  

The RBI Tuesday told the National Company Law Appellate Tribunal that banks will have to classify the accounts of debt-ridden IL&FS and its group companies as NPAs in terms of its master circular and the Supreme Court judgement. "And whatever process, you are having for resolution in IL&FS, we are not on recovery and the resolution process, we are only saying banks has to record the position of NPA in terms of the master circular and the supreme court judgement, which recognises NPAs in the circular," Jain said. The RBI has moved the NCLAT seeking modification of its order that restrained banks from declaring accounts of IL&FS and its group companies as NPAs. Passing an order on February 25, the NCLAT had said : "We make it clear that due to non-payment of dues by the Infrastructure Leasing & Financial Services Limited' or its entities including the Amber Companies', no financial institution will declare the accounts of Infrastructure Leasing & Financial Services Limited' or its entities as NPA' without prior permission of this Appellate Tribunal".

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History of this topic

CIC Stays RBI Order Directing Bank To Disclose RTI Information On NPAs & Top Defaulters
3 years, 6 months ago

CIC Stays RBI Order Directing Bank To Disclose RTI Information On NPAs & Top Defaulters

Live Law  

The Central Information Commission has stayed the order of the First Appellate Authority of the Reserve Bank of India which had directed the disclosure of information on non-performing assets and top defaulters of the Saraswat Co-operative Bank Limited. The RBI's FAA issued the direction to the bank in an RTI application filed by former Commissioner Shailesh Gandhi, seeking information on …

NCLAT asks IL&FS, govt about steps taken for 55 loss making red firms
5 years, 5 months ago

NCLAT asks IL&FS, govt about steps taken for 55 loss making red firms

Live Mint  

New Delhi: The National Company Law Appellate Tribunal has asked from the government and IL&FS about the steps being taken for the 55 loss making red entities of the debt-ridden group. The appellate tribunal has also asked as whether any such red entities could be categorised into green or amber list of IL&FS companies. Besides, the appellate tribunal also asked …

NCLAT asks IL&FS group companies upgraded to 'green' category from 'amber' to start paying debts
5 years, 7 months ago

NCLAT asks IL&FS group companies upgraded to 'green' category from 'amber' to start paying debts

Firstpost  

Companies under the green category will be those that continue to meet their payment obligations New Delhi: The National Company Law Appellate Tribunal on Wednesday asked IL&FS group companies, which are being upgraded to ‘green’ category, to start servicing their debts as per the payment schedule. The NCLAT also said that if ‘amber’ listed companies are not reclassified into ‘green’ …

Sale of 10 IL&FS entities underway; board to adopt asset level resolution for group companies: Govt
5 years, 7 months ago

Sale of 10 IL&FS entities underway; board to adopt asset level resolution for group companies: Govt

Firstpost  

The board of IL&FS, which has to repay over Rs 90,000 crore to lenders, has decided to adopt an “asset level resolution” with regard to various group companies and entities. New Delhi: The resolution process for 10 profitable IL&FS group companies, having total debt of Rs 11,564 crore, is underway, the government informed the National Company Law Appellate Tribunal said …

RBI withdraws circular asking banks to declare exposure to crisis-hit IL&FS
5 years, 8 months ago

RBI withdraws circular asking banks to declare exposure to crisis-hit IL&FS

Firstpost  

Following an NCLAT order, the Reserve Bank of India has withdrawn its circular asking banks and financial institutions to declare details of their exposure and provisions related to the crisis-hit IL&FS Mumbai: Following an NCLAT order, the Reserve Bank of India has withdrawn its circular asking banks and financial institutions to declare details of their exposure and provisions related to …

RBI withdraws circular that asked banks to disclose IL&FS exposure, provisions
5 years, 8 months ago

RBI withdraws circular that asked banks to disclose IL&FS exposure, provisions

Live Mint  

Mumbai: The Reserve Bank of India on Wednesday withdrew its 24 April-circular which mandated banks to disclose their exposure to Infrastructure Leasing and Financial Services Ltd, and its group entities, in their notes to financial statements. This comes after the National Company Law Appellate Tribunal last week allowed banks to declare defaulting loans of IL&FS and its group companies as …

NCLAT allows banks to declare defaulting IL&FS accounts as NPAs
5 years, 8 months ago

NCLAT allows banks to declare defaulting IL&FS accounts as NPAs

Live Mint  

The National Company Law Appellate Tribunal on Thursday allowed the banks to declare as non-performing assets the accounts of IL&FS and its group companies that have defaulted on payments. However, the appellate tribunal has also clarified that although the banks would declare the IL&FS accounts as NPAs but can not initiate recovery process and debit money. The NCLAT had in …

RBI wants banks to disclose IL&FS NPAs, provisions in their Q4 results
5 years, 8 months ago

RBI wants banks to disclose IL&FS NPAs, provisions in their Q4 results

Live Mint  

Mumbai: The Reserve Bank of India on Wednesday asked banks to disclose their exposure to Infrastructure Leasing and Financial Services Ltd, and its group entities, in their notes to financial statements. In a notification, RBI said banks must disclose details, including total amount of exposure that are non-performing assets as per Income Recognition and Asset Classification norms, but not classified …

NCLAT order on IL&FS rewards imprudence, ignorance at banks
5 years, 10 months ago

NCLAT order on IL&FS rewards imprudence, ignorance at banks

Live Mint  

As court orders go, the latest by National Company Law Appellate Tribunal on Infrastructure Leasing and Financial Services Ltd was bizarre. Second, when the order says all financial institutions, it is unclear whether they were even parties to the intervening application in which this order was passed,” said Bhargavi Zaveri, senior researcher at think tank Indira Gandhi Institute of Development …

No lender can unilaterally tag accounts of IL&FS, group firms as NPAs: NCLAT
5 years, 10 months ago

No lender can unilaterally tag accounts of IL&FS, group firms as NPAs: NCLAT

Live Mint  

No bank or financial institution can declare the accounts of debt-ridden Infrastructure Leasing & Financial Services and its group companies as non-performing assets without National Company Law Appellate Tribunal’s permission, the appellate tribunal said on Monday. “No IL&FS or its subsidiaries’ account to be declared NPA by any financial institution without approval from NCLAT,” the appellate tribunal said. During the …

IL&FS Crisis : NCLAT Permits 22 Cos To Pay Debts; Justice D K Jain To Supervise Resolution Process [Read Order]
5 years, 10 months ago

IL&FS Crisis : NCLAT Permits 22 Cos To Pay Debts; Justice D K Jain To Supervise Resolution Process [Read Order]

Live Law  

The National Company Law Appellate Tribunal on Monday lifted morotorium over 22 companies of the debt-ridden Infrastructure Leasing &Financial Services group, permitting them to service their debt obligations.These 22 companies were classified as "Green" companies by the Ministry of Corporate Affairs, based on their repayment capacity. The National Company Law Appellate Tribunal on Monday lifted morotorium over 22 companies of …

NCLAT allows 22 IL&FS group firms to service debt obligations
5 years, 10 months ago

NCLAT allows 22 IL&FS group firms to service debt obligations

Live Mint  

The National Company Law Appellate Tribunal Monday allowed 22 companies of crisis-hit IL&FS group to service their debt obligations. Besides, a two-member bench headed by Justice S J Mukhopadhaya approved appointment of former Supreme Court judge Justice D K Jain to supervise resolution process of IL&FS group. The appellate tribunal also lifted moratorium and allows 133 IL&FS firms incorporated outside …

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