Allahabad HC denies interim relief to power cos on RBI stressed loan norms

Power producers had approached the Allahabad High Court to prevent lenders from initiating insolvency proceedings against them

The Allahabad High Court on Monday refused
to grant interim relief to power companies, which had filed pleas against the Reserve Bank of India (RBI) norms on stressed loans, TV channels reported. 

Public sector banks will have to take a haircut of 60-70 per cent on loans given to power companies. 

In February, the Reserve Bank of India (RBI) introduced new rules and a 180-day timeline for banks to recast loans once payments are missed, scrapping previous methods that could take an indefinite amount of time.

As reported by Bloomberg, companies that were delinquent when the norms came