‘Dirty Dozen’ NPA resolution: 4 done! 8 under process; here’s IBC update for 12 big accounts

By: | Updated: July 26, 2018 1:09 PM

Last year in June the Reserve Bank of India (RBI), after being vested with new legislative powers, identified 12 big accounts constituting 25% of total non-performing assets in the country for immediate resolution. Here's an update

'Dirty Dozen' NPA resolution: 4 done! 8 under process; here's IBC update for 12 big accountsFour of the 12 accounts have been resolved, while seven are at different stages, and one, Jyoti Structures, could go into liquidation.

Last year in June the Reserve Bank of India (RBI), vested with new legislative powers, identified 12 big accounts constituting 25% of total non-performing assets in the country for immediate resolution under the Insolvency and Bankruptcy Code (IBC) and called them ‘Dirty Dozen’.

Although the IBC sets a strict timeline of 180 days (plus an extension of 90 days) for the resolution process, initial disputes arising out of the interpretation of the law — and its clauses — delayed resolution of some accounts. So far, four of the 12 accounts have been resolved, while seven are at different stages, and one, Jyoti Structures, could go into liquidation.

Here’s an update on ‘Dirty Dozen’ NPA resolution

  1. Bhushan Steel Ltd: Now owned by Tata Steel
  2. Electrosteels Steel: Soon to be owned by Vedanta
  3. Monnet Ispat & Energy: NCLT nod  to AION Capital-JSW Steel consortium bid
  4. Amtek Auto: NCLT nod to Liberty House resolution plan
  5. Bhushan Steel and Power: Tata Steel, Liberty House, and JSW Steel in race
  6. Essar Steel: NCLAT order awaited for ArcelorMittal and Numetal Mauritius bids
  7. Alok Industries: Reliance Industries (RIL)-JM Financial ARC sole 
  8. Jaypee Infratech: Matter pending before the Supreme Court
  9. Jyoti Structures: NCLT rejects NPA resolution plan
  10. Lanco Infratech: CoC deciding on resolution plan submitted by Thriveni Earthmovers
  11. ABG Shipyard: Resolution plan by Liberty House; matter pending before the NCLT
  12. Era Infra Engg: Insolvency plea admitted by the NCLT

The Narendra Modi government brought in IBC law in 2016 with an aim to fix the NPA issue in the country, which had then risen to about Rs 8 lakh crore. By April 2017, the RBI was given additional legislative powers to initiate insolvency against big loan defaulters. In June 2017, the RBI identified 12 big accounts for immediate resolution, followed by 28 others in December.

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