Allahabad HC refuses interim relief to power firms from RBI directions

Banks will have to start resolution process for assets whose deadline is over

The Allahabad High Court (HC) refused on Monday to provide relief for privately-owned stressed power projects from the Reserve Bank of India’s (RBI’s) February 12 order.

The RBI circular directed lenders to undertake insolvency resolution of defaulting companies within a strict timeline. The central bank had ordered banks to identify stress even when repayments were overdue by only a day. Resolution proceedings must be completed in 180 days, a deadline that ended on Monday.

The court has, however, allowed the affected companies to try the legal route for individual grievances. 

Monday’s order sets the clock ticking on 34