Business Standard

Govt in damage control mode after SC verdict, Sec 35 may be invoked

Section 35AA empowers the central government to authorise the RBI "for issuing directions to banking companies to initiate insolvency resolution process"

rbi, reserve bank of india
Premium

Shrimi ChoudharyAnup Roy New Delhi/Mumbai
Bruised by the Supreme Court’s verdict on the Reserve Bank of India’s (RBI’s) February 12, 2018, circular on resolving bad debt, the government is planning to authorise the central bank to refer companies to the Insolvency and Bankruptcy Code (IBC) on a case-by-case basis.
 
“We will not let the IBC process weaken. The Supreme Court verdict does not curtail the government’s powers to give directions to the RBI to initiate recovery proceedings. The government will invoke Section 35AA of the Banking Regulation Act to soften the Supreme Court verdict on the February 12 circular,” said a senior finance ministry

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in