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Essar Steel insolvency issue vs RBI: What lies ahead?

In this case, RBI's low capacity in legal drafting is unlikely to lead to a serious legal problem

Foreign firms lead in asset purchase after Essar Oil buy

The Banking Regulation (Amendment) Ordinance, 2017 recently empowered RBI to issue directions to banks for resolution of stressed assets. After this, RBI issued a Press Release dated June 13, 2017 explaining the process it is following to direct banks to refer certain accounts for resolution under the Insolvency and Bankruptcy Code, 2016 (IBC). Essar Steel has challenged this process before the Gujarat High Court. A single judge of the Gujarat High Court admitted the challenge at a preliminary level since it found two legal issues in the RBI Press Release. The first stems from ...