MUMBAI: The Reserve Bank of India has ordered banks not to initiate bankruptcy proceedings against Jaiprakash Associates, possibly in anticipation of legal complications after a Supreme Court ruling barred its promoters from selling or transferring assets, said bank executives. The ruling was aimed at safeguarding the interests of buyers of homes being built by the company.
Jaiprakash Associates is among 28 companies that banks were directed to refer to bankruptcy court if debt resolution plans weren’t in place by the end of 2017. It is the only company in the list that has received a special dispensation from RBI in this regard, bankers said.
“The regulator has told us to ‘keep on hold’ the move to refer Jaiprakash Assoc…
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