HC verdict on stressed power assets aided govt on Section 7 of RBI Act

Now, all eyes are on the hearings in the Supreme Court, slated to begin from Wednesday

The Allahabad High Court judgment on stressed power companies’ plea became an armour for the government to invoke a rare provision to initiate dialogue with the Reserve Bank of India (RBI) on a series of issues.

In the first fortnight of October, the finance ministry had sent three letters to RBI Governor Urjit Patel making suggestions on a dozen issues, using the provisions of consultation with the governor under Section 7 of the RBI Act.

Using this provision, the first communication to the RBI Governor was sent to seek his views on providing relief to some stressed private power companies