MUMBAI: 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 resolve the problem in 180 days failing which such accounts must be referred to NLCTs for resolution for large account of ₹2,000 crore and above.
“The circular had outlined impractical conditions and timelines for resolution and also had an inbuilt bias against the existing owners of stressed projects,” APP director- general Ashok Khurana said in a statement.
