Why differentiate between NCLT, non-NCLT cases: Sajjan Jindal

Jindal has questioned why the promoters of stressed assets were allowed to participate in the debt restructuring process

JSW Group Chairman Sajjan Jindal has questioned why the promoters of stressed assets in the RBI’s second list were allowed to participate in the debt restructuring process, unlike those referred to the National Company Law Tribunal (NCLT) for resolution. 

“Existing promoters are allowed to be in management in non-NCLT cases with deep debt restructuring involving large haircuts, if they are not wilful & non-cooperative borrowers. If so, why to differentiate in #NCLT cases to debar legitimate promoters in bidding process? @arunjaitley,” Jindal tweeted on Tuesday. The fate of 28 accounts will be decided on Wednesday, when the RBI deadline ends.