NEW DELHI: The Reserve Bank of India (RBI) on Tuesday moved the NCLAT seeking modification of its order that restrained banks from declaring accounts of the debt-laden IL&FS and its group companies as NPAs even as the tribunal asked the banking regulator not to make it a “prestige issue”. Admitting the apex bank’s plea, which contends that there is an overlap of power, the tribunal also wanted it to clarify whether its NPA norms and powers come in the way of successful resolution of IL&FS.
The NCLAT said the RBI cannot restrict it from prohibiting banks from ‘asset classification’ and observed that any change in this order would upset the entire resolution process of the IL&FS and 300 group companies, which are sitting on the huge debt amounting to over Rs 90,000 crore. The Reserve Bank of India has moved the tribunal requesting it to modify its order restraining banks from classifying IL&FS and its group companies as NPAs, contending that there was an overlap of power. RBI contended before NCLAT that it is regulator of banks and it should also be heard in the matter will be heard on March 29.
