No bank or financial institution can declare the accounts of debt-ridden IL&FS and its group companies as non-performing assets (NPAs) without NCLAT's permission, the appellate tribunal said on Monday.
The tribunal's direction came during the hearing over the government's plan for the resolution of IL&FS group companies.
Besides, it had also approved the appointment of former Supreme Court judge Justice D K Jain to supervise the resolution process of crisis-hit IL&FS and its group companies.
The appellate tribunal also lifted the moratorium and allowed 133 IL&FS firms incorporated outside India to continue with the resolution process.
IL&FS group companies are classified into three groups -- Green, Amber and Red -- based on their respective financial positions.
The companies falling under green category will continue to meet their payment obligation. While the companies which can not meet their obligations but can meet only operational payment obligations to senior secured financial creditors are classified as amber.
The red category includes those entities which cannot meet their payment obligations towards even senior secured financial creditors.
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