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Gujarat HC dismisses Essar Steel plea against RBI in bankruptcy case

Ruling a boost for govt, which has tweaked banking laws to empower RBI to tackle the bad debt issue

Reuters  |  Mumbai 

The Gujarat High Court on Monday dismissed Essar Steel India Ltd's appeal against a Reserve Bank of India (RBI) order that asked creditor banks to start insolvency proceedings against the steelmaker, lawyers on the case said. The ruling is a boost to the government, which in May tweaked Indian banking laws to empower the RBI to tackle the country's bad debt issue, allowing the RBI for the first time to direct lenders to force defaulters into insolvency courts. The ruling paves the way for the start of bankruptcy proceedings against Essar Steel, although the company could ...

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First Published: Mon, July 17 2017. 16:35 IST