New Delhi: Essar Steel has moved the Gujarat High Court against insolvency proceedings initiated by the banks on the direction of the Reserve Bank (RBI). The high court issued notice to the RBI and leader of the banking consortium SBI and posted the matter for Friday, sources said.
When contacted, a company spokesperson said: “Essar Steel has moved the Gujarat High Court, which has posted the matter for hearing on 7 July, 2017.”
Clamping down on bad loans, the RBI had last month identified 12 accounts for insolvency proceedings with each of them having over Rs 5,000 crore of outstanding loans, accounting for 25 percent of total NPAs of banks.
As per sources, some of the borrowers have raised issues that the RBI’s direction makes an arbit…
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