RBI 12 February circular quashed gives power sector some breathing space
5 years, 9 months ago

RBI 12 February circular quashed gives power sector some breathing space

Live Mint  

Mumbai: The striking down of the Reserve Bank of India’s 12 February 2018 circular, which would have fast-forwarded defaulting companies to bankruptcy court, will now save stressed power assets from immediate liquidation, according to power sector executives. “This provides much-needed relief to power companies which had been taken to NCLT under the RBI circular, including assets of RattanIndia, GVK, IL&FS and Coastal Energen,” he said. The RBI circular directed banks to refer defaulters to bankruptcy courts if they were unable to find a resolution plan for stressed accounts where the aggregate outstanding was more than ₹2,000 crore within 180 days. Vishrov Mukerjee, partner at law firm J Sagar Associates, who represented several stressed power projects as well as APP, said the apex court’s judgement has caused several grey areas.

Resolution Assets Power Crore Nclt Rbi Circular 180 Days Stressed Power Companies 12 February Circular  space  resolution  rbi  assets  companies  stressed  quashed  power  gives  sector  circular  breathing  12  nclt  lenders  crore

History of this topic

Borrower Can't Claim Loan Moratorium As A Right Based On RBI's Circular Of March 2020 : Karnataka High Court
2 years, 11 months ago

Borrower Can't Claim Loan Moratorium As A Right Based On RBI's Circular Of March 2020 : Karnataka High Court

Live Law  

The Karnataka High Court recently set aside the directionsissued to Reserve Bank of India by a single judge bench of the High Court directing it to monitor the implementation of Covid-19 package announced on March 27, 20202, by which RBI had allowed Banks to declare a three-month moratorium on all term loans, outstanding as on March 1, 2020. Senior Advocate …

RBI Has Wide Supervisory Powers Over Financial Institutions Like SIDBI, Its Directions Are Statutorily Binding: Supreme Court
3 years ago

RBI Has Wide Supervisory Powers Over Financial Institutions Like SIDBI, Its Directions Are Statutorily Binding: Supreme Court

Live Law  

A Supreme Court bench comprising, while presiding over a matter regarding delayed payments of principal amount and interest accrued on bonds issued by SIDBI, stated that " The facts of the case relate to the issuance of a number of bonds by the appellant to M/s. The appellant refused to do so citing that RBI had issued a facsimile directing …

Plea Seeking Extension of The Benefits Of RBI Circular on Loan Moratorium To All NBFCs: SC Issues Notice
4 years, 7 months ago

Plea Seeking Extension of The Benefits Of RBI Circular on Loan Moratorium To All NBFCs: SC Issues Notice

Live Law  

The Supreme Court has issued notice to the Centre and Reserve Bank of India in a plea by The Confederation of Real Estate Developers' Associations of India which sought for clarification regarding whether all NBFCs were eligible for loan moratorium or whether banks had the discretion to give the benefit. On March 27, in wake of the COVID-19 pandemic and …

RBI to issue revised NPA circular in 3-4 days: Shaktikanta Das
5 years, 7 months ago

RBI to issue revised NPA circular in 3-4 days: Shaktikanta Das

Live Mint  

Mumbai: Reserve Bank of India Governor Shaktikanta Das on Thursday said the RBI will issue a new circular on non-performing assets in three to four days. After the previous monetary policy meet in April, Das had told reporters that the central bank will take necessary steps including the issuance of a revised circular "as may be necessary for the effective …

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's revised guidelines for resolution of stressed assets likely before 23 May; poll code may not impact issuance of new rules
5 years, 8 months ago

RBI's revised guidelines for resolution of stressed assets likely before 23 May; poll code may not impact issuance of new rules

Firstpost  

Against the backdrop of the Supreme Court quashing an RBI circular, issued on 12 February, 2018, a revised set of rules is under works and would be released soon, they said. New Delhi/Mumbai: The Model Code of Conduct for the Lok Sabha polls is unlikely to have any bearing on issuance of a revised framework for resolution of stressed assets …

RBI’s revised guidelines for resolution of stressed assets likely before May 23
5 years, 8 months ago

RBI’s revised guidelines for resolution of stressed assets likely before May 23

Live Mint  

New Delhi: The Model Code of Conduct for the Lok Sabha polls is unlikely to have any bearing on issuance of a revised framework for resolution of stressed assets by the Reserve Bank of India and the guidelines are expected to be announced before May 23, sources said. Against the backdrop of the Supreme Court quashing an RBI circular, issued …

RBI’s revised debt resolution rules likely post-election
5 years, 8 months ago

RBI’s revised debt resolution rules likely post-election

Live Mint  

New Delhi: The RBI's revised stress assets resolution circular is likely to be out after the elections to clear the model code of conduct, and also the regulator may need time to have consultations with legal experts, industry and government before bringing the framework out, official sources said. As per the circular, banks were told to start the resolution process …

SC's RBI Circular judgment: A Treatise On Interpretation Of Statutes
5 years, 9 months ago

SC's RBI Circular judgment: A Treatise On Interpretation Of Statutes

Live Law  

The recent Supreme Court judgment on the RBI circular dated 12th February 2018 is a treatise on the subject of interpretation of statutes. The Supreme Court, however, held in its 84-page judgment that the circular is ultra vires of Section 35AA of the Banking Regulation Act and that RBI had no powers to issue such an order under the current …

Fate Of The Accounts Covered Under The February 2018 Circular Post-Supreme Court Judgment
5 years, 9 months ago

Fate Of The Accounts Covered Under The February 2018 Circular Post-Supreme Court Judgment

Live Law  

The Supreme Court of India in the matter of Dharani Sugars & Chemical Ltd Vs. Union of India struck down Circular dated 12th February 2018 issued by RBI as ultra vires of section 35AA of the Banking Regulation Act, 1949. The Supreme Court analyzed the scope of power of RBI under Section 35 AA of the BR Act and held …

RBI to issue revised circular on bad loan resolution: Shaktikanta Das
5 years, 9 months ago

RBI to issue revised circular on bad loan resolution: Shaktikanta Das

Live Mint  

Mumbai: The Reserve Bank of India will issue a revised circular for resolution of stressed assets after its 12 February 2018 norms were struck down by the Supreme Court earlier this week, RBI governor Shaktikanta Das said on Thursday. The RBI will take steps in light of the court order, including issuance of a revised circular, for expeditious and effective …

SC repeals RBI's 12 February circular: Lenders can now refer defaulters to NCLT on case by case basis: Bankers
5 years, 9 months ago

SC repeals RBI's 12 February circular: Lenders can now refer defaulters to NCLT on case by case basis: Bankers

Firstpost  

According to former RBI deputy governor R Gandhi banks can now take defaulting companies on their own instead of being directed by the regulator. In the best interest of customers, banks will take a call on referring cases to National Company Law Tribunal on case by case basis, a top public sector bank official told PTI. Prior to the 12 …

RBI 12 February circular no more: What it means for banks, IBC cases
5 years, 9 months ago

RBI 12 February circular no more: What it means for banks, IBC cases

Live Mint  

Mumbai: The Supreme Court setting aside the Reserve Bank of India’s 12 February 2018 circular to replace all loan restructuring schemes with a formal bankruptcy process has restored previous debt recast options for defaulting companies and given a free hand to banks to explore steps to rescue such companies outside the court. Catch all the latest news in our blog: …

SC quashes RBI Feb 12 circular: What it means for deal activity in India
5 years, 9 months ago

SC quashes RBI Feb 12 circular: What it means for deal activity in India

Live Mint  

Mumbai: India-focused distressed assets funds may see higher deal activity in pre-National Company Law Tribunal cases with the Supreme Court quashing the Reserve Bank of India’s 12 February 2018 circular on Tuesday. RBI had on 12 February 2018 ordered lenders to begin bankruptcy proceedings against defaulters before NCLT if they failed to make interest payment within 180 days of missing …

RBI Feb 12 circular quashed. All eyes now on monetary policy
5 years, 9 months ago

RBI Feb 12 circular quashed. All eyes now on monetary policy

Live Mint  

Mumbai/New Delhi: The Supreme Court on Tuesday quashed RBI's 12 February circular that had set strict norms for bad loan resolution, easing the concerns of some debt-laden companies and upending India’s fledgling bankruptcy process. The RBI circular directed banks to refer defaulters to bankruptcy courts if they were unable to find a resolution plan within 180 days for stressed accounts …

Supreme Court order on NPAs: Power firms body heaves a sigh of relief
5 years, 9 months ago

Supreme Court order on NPAs: Power firms body heaves a sigh of relief

Live Mint  

Welcoming the Supreme Court ruling quashing the RBI circular on resolution of stressed assets, the Association of Power Producers on Tuesday said it will give some breather and flexibility to restructure their debt. The apex court quashed the RBI circular of 12 February, 2018, that made it mandatory for banks to recognize even a one-day defaults by the borrowers and …

SC order quashing RBI circular to give relief to power companies but delay bankruptcy proceedings
5 years, 9 months ago

SC order quashing RBI circular to give relief to power companies but delay bankruptcy proceedings

Hindustan Times  

The Supreme Court order quashing a Reserve Bank of India circular on resolving bad debt will provide relief to power companies and lenders as well as flexibility to restructure debts but will slowdown bankruptcy proceedings, experts said Tuesday. The Supreme Court on Tuesday quashed RBI’s February 12 circular, which prescribed rules for recognising one-day defaults by large corporates and initiating …

RBI to decide on required action after SC order: Arun Jaitley
5 years, 9 months ago

RBI to decide on required action after SC order: Arun Jaitley

Live Mint  

Within hours of the Supreme Court voiding the RBI's timebound debt resolution circular of last February, a cautious government said on Tuesday that, on the nullifying of this directive, the central bank would have to decide on what is required to be done for recovery of banks' bad loans. "RBI will now decide with the present condition of the market …

SC Strikes Down RBI Circular Asking Banks To Take Defaulting Companies To Insolvency [Read Judgment]
5 years, 9 months ago

SC Strikes Down RBI Circular Asking Banks To Take Defaulting Companies To Insolvency [Read Judgment]

Live Law  

The Supreme Court today struck down the circular issued by the Reserve Bank of India on February 12, 2018 directing banks to initiate insolvency proceedings against companies having bad debts of Rs 2000 crores or above.The February 12 circular had directed banks to resolve debts over Rs 2000 crores within 180 days, failing which the corporate debtor would have to …

Supreme Court strikes down RBI's 12 February circular on bankruptcy proceedings, declares it illegal
5 years, 9 months ago

Supreme Court strikes down RBI's 12 February circular on bankruptcy proceedings, declares it illegal

Firstpost  

Last month, the RBI had maintained that there was no dilution in its stand with regard to 12 February circular on stressed assets recognition and resolution. In a major relief to stressed power, sugar and infrastructure firms, the Supreme Court on Tuesday quashed the Reserve Bank of India’s 12 February, 2018 circular on bankruptcy proceedings and declared it ultra vires_,_ …

Supreme Court quashes RBI’s 12 February circular on one-day default
5 years, 9 months ago

Supreme Court quashes RBI’s 12 February circular on one-day default

Live Mint  

Mumbai: The Supreme Court on Tuesday quashed the Reserve Bank of India’s 12 February circular which prescribed rules for recognising one-day defaults by large corporates and called for insolvency action as a remedy. Since the central bank had also cancelled all its previous restructuring schemes in favour of 12 February circular, lenders will now have to individually look at resolution …

No dilution on Feb 12 circular over stressed assets: RBI
5 years, 9 months ago

No dilution on Feb 12 circular over stressed assets: RBI

Live Mint  

The Reserve Bank of India Saturday maintained that there is no dilution in its stand with regard to February 12 circular on stressed assets recognition and resolution. "It is reiterated that the Reserve Bank maintains its stand on all aspects of the Framework as has been consistently articulated in its communications, including the clarification given during the post-monetary policy press …

Banks risk adding $25 billion in power sector NPAs on Supreme Court decision
5 years, 10 months ago

Banks risk adding $25 billion in power sector NPAs on Supreme Court decision

Live Mint  

Mumbai: A year after the Reserve Bank of India tightened the screws on companies delaying debt payments, the Supreme Court is poised to begin hearing arguments on whether the banking regulator’s diktat applies across industries. They are among parties contesting RBI's 12 February circular that forced banks to recognize loans as non-performing assets if dues are delayed even by a …

Opinion | An intruder undermines RBI
5 years, 10 months ago

Opinion | An intruder undermines RBI

Live Mint  

Bankruptcy proceedings usually involve protecting a firm’s assets from creditors. The ruling by the bankruptcy court, which is overseeing the government- Already India has lost two RBI governors because, among other things, they dared to ask banks to acknowledge problem loans in time, classify them correctly and make adequate provisions for losses. Already-delayed Indian tribunal proceedings will stretch forever, with …

One year of RBI's 12 February circular: A look at charts that depict bad loan scenario after central bank's crackdown on NPA menace
5 years, 10 months ago

One year of RBI's 12 February circular: A look at charts that depict bad loan scenario after central bank's crackdown on NPA menace

Firstpost  

In a bid to hasten the resolution of bad loans, RBI tightened rules to make banks identify and tackle any non-payment of loans rapidly by issuing a circular on 12 February 2018 Exactly a year ago, in a bid to hasten the resolution of bad loans, the Reserve Bank of India had tightened rules to make banks identify and tackle …

Supreme Court verdict on IBC: Indian banks’ fight against bad loans has just got a thumbs-up from judiciary
5 years, 11 months ago

Supreme Court verdict on IBC: Indian banks’ fight against bad loans has just got a thumbs-up from judiciary

Firstpost  

The intent and purpose behind the enactment of the IBC was to pave the way for expeditious resolution of the burgeoning pile of non-performing assets in the financial sector. Since its strict enforcement by the lenders, consequent upon the Reserve Bank of India instructions to institute resolution proceedings in the National Company Law Tribunal against top 20 non-performing exposures and …

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