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New Delhi, Delhi, India
The Gujarat High Court has dismissed Essar Steel's plea against the Reserve Bank of India's order to lenders to pursue insolvency cases against the steelmaker.
The government in May had brought an ordinance to amend the Banking Regulation Act giving the Reserve Bank of India (RBI) powers to resolve Indian banking industry's bad debt crisis.
Arguing before the Gujarat High Court, Essar Steel said that it should have been given an opportunity to present its case before the RBI, according to Reuters.
In June, the RBI had come out wih a list of 12 companies, comprising around a quarter of the total stressed assets in the banking system, against whom insolvency proceedings could begin.
Earlier reports had put the amount that Essar Steel owes to banks at Rs 45,000 crore, of which Rs 31,670 crore turned non-performing os of March 31, 2016, Reuters said.