The Reserve Bank of India (RBI) has sent commercial banks a second list of at least 26 defaulters with which it wants creditors to start the process of debt resolution before initiating bankruptcy proceedings, three bankers aware of the development said.
In a letter, the central bank said these accounts should first be resolved through any of RBI’s schemes before 13 December, failing which cases should be filed against these companies under the Insolvency and Bankruptcy Code (IBC) at the National Company Law Tribunal (NCLT) before 31 December.
NCLT is the arbitration authority for cases filed under the IBC.
These are accounts where 60% of the outstanding amount was classified as non-performing on the books of banks as of 30 June, RBI added in its letter, the bankers cited above said on condition of anonymity.
Videocon Industries Ltd and Jaiprakash Associates Ltd (JAL) are the two large companies among the list of 26 defaulters, accounting for over Rs1 trillion of debt, two of the bankers said. Multiple phone calls to Venugopal Dhoot, chairman and managing director of Videocon, remained unanswered.
“We have no comment to offer as JAL’s resolution plan was approved on 22 June by JLF (joint lenders’ forum),” said Manoj Gaur, chairman, Jaypee Group.
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