RBI, FinMin apprise PMO on bad loan mess
The Reserve Bank of India (RBI) and the Finance Ministry on Monday apprised the Prime Minister's Office on the NPA resolution progress
According to sources, RBI Deputy Governor Viral Acharya indicated that a broad timeframe is needed to deal with NPA cases.
Insolvency and Bankruptcy Board chief MS Sahoo said that around 100 cases are already being dealt with under the Insolvency and Bankruptcy Code.
He added that 12 large cases of NPAs are yet to be resolved. These cases will be filed with National Company Law Tribunal (NCLT) by banks. The NCLT is well equipped to handle these cases as and when they come and dispose of them within the time frame, he said.
Sahoo indicated that he does not expect any delays owingto counter civil suits in these 12 large NPA cases.
Meanwhile, government officials are also indicating that companies involved in these cases have already started lobbying with the Finance Ministry. These companies are trying to seek more time to pay up instead of going for the resolution as suggested under the new ordinance.
However, the government has indicated that they are not adopting the lenient approach and they are not keen to give more time to pay up. They said that only the NCLT’s view will be taken up forward.