Essar Steel India Limited filed a Special Civil Application challenging the Reserve Bank of India's (RBI) directive to banks to initiate insolvency proceedings under the Insolvency and Bankruptcy Code (IBC), 2016. The challenge is based on the grounds that Essar Steel's restructuring proposal was under active consideration, and the RBI's directive is discriminatory. The RBI issued a press release on June 13, 2017, directing banks to initiate insolvency proceedings against 12 companies, including Essar Steel, which the petitioner contends is in conflict with existing circulars and directions.
Essar Steel India Limited (ESIL) is facing insolvency proceedings initiated by its lenders, including State Bank of India (SBI) and Standard Chartered Bank (SCB), following a directive from the Reserve Bank of India (RBI). The RBI issued a press release on June 13, 2017, directing banks to initiate insolvency proceedings against 12 companies, including ESIL, under the Insolvency and Bankruptcy Code (IBC), 2016. ESIL challenges this directive, arguing that it is discriminatory and conflicts with ongoing restructuring efforts. ESIL claims to have repaid Rs. 3467 Crores in the last 15 months and has significant operations across multiple locations. The company's debt is over Rs. 45,000 Crores, with a substantial portion classified as non-performing assets (NPAs). SBI and
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Essar Steel India Limited filed a Special Civil Application challenging the Reserve Bank of India's (RBI) directive to banks to initiate insolvency proceedings under the Insolvency and Bankruptcy Code (IBC), 2016. The challenge is based on the grounds that Essar Steel's restructuring proposal was under active consideration, and the RBI's directive is discriminatory. The RBI issued a press release on June 13, 2017, directing banks to initiate insolvency proceedings against 12 companies, including Essar Steel, which the petitioner contends is in conflict with existing circulars and directions.
Essar Steel India Limited (ESIL) is facing insolvency proceedings initiated by its lenders, including State Bank of India (SBI) and Standard Chartered Bank (SCB), following a directive from the Reserve Bank of India (RBI). The RBI issued a press release on June 13, 2017, directing banks to initiate insolvency proceedings against 12 companies, including ESIL, under the Insolvency and Bankruptcy Code (IBC), 2016. ESIL challenges this directive, arguing that it is discriminatory and conflicts with ongoing restructuring efforts. ESIL claims to have repaid Rs. 3467 Crores in the last 15 months and has significant operations across multiple locations. The company's debt is over Rs. 45,000 Crores, with a substantial portion classified as non-performing assets (NPAs). SBI and
…A significant portion…
RBI communicated with Scheduled Commercial…