The Supreme Court is likely to deliver a verdict today on the clutch of petitions, including from power producers’ association, seeking relaxation of the Reserve Bank of India (RBI) norms that mandate insolvency proceedings in case of debt servicing default beyond 180 days.
The top court had given interim relief to power companies by asking the regulator to maintain status quo in September this year. On August 27, the RBI-mandated 180 day deadline ended for as many as 34 stressed power projects, many of which were staring at NCLT proceedings under the Insolvency and Bankruptcy Code (IBC). These power projects turned NPAs on March 1.
Experts say that a verdict in favour of stressed power companies, diluting the RBI norms, will set a dangerous precedent. Read More
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