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In A Relief To Power Companies, Supreme Court Cancels RBI's February 12 Circular
Supreme Court held Feb. 12 circular ultra vires and unconstitutional The 180 day cap for finding a resolution plan has been struck down Power firms had sought intervention of the Supreme Court
02 Apr 2019, 12:37 PM IST 
The 180-day cap for finding a resolution plan has been struck down by the Supreme Court.
The Supreme Court today declared a February 12 circular by the Reserve Bank of India, which aimed at resolution of stressed assets in the banking system, as unconstitutional. In the circular, the central bank laid out timelines and revised the framework for resolution of stressed loan accounts. The RBI called for a resolution plan to be implemented in case a company with a loan amount of Rs 2,000 crore or more defaulted on its dues e...
