The National Company Law Appellate Tribunal (NCLAT) on Thursday said banks can declare as non-performing assets (NPAs) the accounts of IL&FS and its group companies that have defaulted on their payments.
An NCLAT bench headed by chairman Justice S.J. Mukhopadhaya lifted the embargo on the lenders to declare the accounts of the debt-ridden IL&FS and its 300 group firms as NPAs.
However, the bench clarified the lenders cannot initiate the recovery process from the toxic accounts.
Lenders must not withdraw support until a resolution is found for the IL&FS and its group companies.
At present, Infrastructure Leasing & Financial Services (IL&FS) Group companies, with a collective debt of over Rs 90,000 crore, are going through a resolution process.
