The case involves multiple writ petitions challenging a circular issued by the Reserve Bank of India (RBI) regarding the resolution of stressed assets, particularly in the power sector. The petitioners, including Independent Power Producers Association of India and Prayagraj Power Generation Company Limited, argue that the circular is arbitrary, violates Article 14 of the Constitution, and fails to account for the unique challenges faced by the power sector. The circular mandates lenders to initiate insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) within a strict timeline if resolution plans are not implemented, which the petitioners claim disregards the operational and regulatory issues specific to the power sector.
The Independent Power Producers Association of India, Association of Power Producers, and Prayagraj Power Generation Company Limited filed writ petitions challenging the RBI's circular on stressed assets. The circular mandates lenders to initiate insolvency proceedings under IBC within 180 days if resolution plans are not implemented. The petitioners argue that the circular is arbitrary, violates Article 14 of the Constitution, and fails to account for the unique challenges faced by the power sector, such as fuel shortages, lack of PPAs, and regulatory issues. The Standing Committee on Energy's reports highlight the stress in the power sector. The petitioners contend that the RBI's circular treats all sectors equally, disregarding the specific challenges of the power
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The case involves multiple writ petitions challenging a circular issued by the Reserve Bank of India (RBI) regarding the resolution of stressed assets, particularly in the power sector. The petitioners, including Independent Power Producers Association of India and Prayagraj Power Generation Company Limited, argue that the circular is arbitrary, violates Article 14 of the Constitution, and fails to account for the unique challenges faced by the power sector. The circular mandates lenders to initiate insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) within a strict timeline if resolution plans are not implemented, which the petitioners claim disregards the operational and regulatory issues specific to the power sector.
The Independent Power Producers Association of India, Association of Power Producers, and Prayagraj Power Generation Company Limited filed writ petitions challenging the RBI's circular on stressed assets. The circular mandates lenders to initiate insolvency proceedings under IBC within 180 days if resolution plans are not implemented. The petitioners argue that the circular is arbitrary, violates Article 14 of the Constitution, and fails to account for the unique challenges faced by the power sector, such as fuel shortages, lack of PPAs, and regulatory issues. The Standing Committee on Energy's reports highlight the stress in the power sector. The petitioners contend that the RBI's circular treats all sectors equally, disregarding the specific challenges of the power
…The Union Government promulgated the Banking…
The Union Government authorized the RBI to issue…
Sign in to view related legal provisions.