Sunday, June 22, 2025 | 02:47 AM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

SC quashes RBI insolvency circular, relief for power assets worth Rs 2-trn

More than 24 stressed power projects that could have faced insolvency proceedings will now find it hard to get buyers because they are "incomplete"

Empowered Committee suggests pit-stop measures for stressed power units
premium

Shreya Jai
The Supreme Court (SC) on Monday provided a huge relief to thermal power projects worth Rs 2 trillion that were facing the threat of insolvency. The apex court held a 12 February 2018 circular of the Reserve Bank of India (RBI), which ordered banks to classify companies as 'stressed' if they default on loans even for a day, to be 'ultra vires'. The SC said that the circular that applied to numerous defaulting assets in power, sugar, shipping and companies in other sectors to be beyond the RBI's legal powers. 

A detailed copy of the judgement is awaited.

The February