'Sashakt' plan for resolution of stressed assets active for pre-IBC process

In October, the IBA had circulated the final operating guidelines for the bank-led resolution process and had received approval from several lenders

The ‘Sashakt’ plan for resolution of stressed assets outside the insolvency courts has been made operational after months of delay. The move is expected to help in resolution of over 1,000 assets worth Rs 3 trillion.

Earlier this month, the Indian Banks’ Association (IBA) had had asked lenders to “initiate and send resolution proposals under the scheme” according to the terms and conditions of the inter-creditor agreement signed this year. The IBA asked lenders to submit credit rating agencies’ reports, forensic reports, minutes of meetings, and summaries of resolution plans, among others.

In October, the IBA had circulated the final operating guidelines