SC Only Quashed RBI Circular on Bad Loans, the Insolvency Law Still Hangs on Private Firms

{
  "authors": [
    "Anirudh Burman"
  ],
  "type": "legacyinthemedia",
  "centerAffiliationAll": "",
  "centers": [
    "Carnegie Endowment for International Peace",
    "Carnegie India"
  ],
  "collections": [],
  "englishNewsletterAll": "",
  "nonEnglishNewsletterAll": "",
  "primaryCenter": "Carnegie India",
  "programAffiliation": "",
  "programs": [],
  "projects": [
    "Political Economy"
  ],
  "regions": [
    "India"
  ],
  "topics": [
    "Economy"
  ]
}

In The Media

Carnegie India

SC Only Quashed RBI Circular on Bad Loans, the Insolvency Law Still Hangs on Private Firms

The Supreme Court’s recent decision striking down the RBI’s February 2018 circular on bad loans highlights something significant about the state machinery—the extent to which it can be a source of risk for private businesses.

By Anirudh Burman

Published on Apr 5, 2019

Source: Print

The Supreme Court’s recent decision striking down the RBI’s February 2018 circular on bad loans highlights something significant about the state machinery — the extent to which it can be a source of risk for private businesses.

In that sense, the ruling provides an immediate relief to promoters in the power sector — mainly because the petitions challenging the RBI circular were primarily filed by power sector companies — from being dragged to insolvency courts under the Narendra Modi government’s 2016 legislation, the Insolvency and Bankruptcy Code (IBC).

Read the Full Text

This article was originally published in the Print.

About the Author

Anirudh Burman

Former Associate Research Director and Fellow, Carnegie India

Anirudh Burman was an associate research director and fellow at Carnegie India. He works on key issues relating to public institutions, public administration, the administrative and regulatory state, and state capacity.

Recent Work

Article
The Best of Ideas and Institutions, 2023
- Suyash Rai, Anirudh Burman
Commentary
Understanding Data Businesses
- Anirudh Burman

Economy India

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

More Work from Carnegie Endowment for International Peace

Article
Build, Not Buy: The Semiconductor Lesson that Indian AI Experts Must Learn
As AI grows more sophisticated, as the supply chains that power it become more contested, and as access to frontier models becomes geopolitically charged, India must begin to ask a different set of questions. Not what applications it can build on someone else’s infrastructure but what the world needs.
Konark Bhandari
Commentary
Sada
The Channels of China’s Currency Promotion in Gulf Markets
Is the Gulf moving beyond the dollar? This article examines how China is expanding the renminbi's role across Gulf markets, what that means for regional finance, and why the future of global currencies is more complex than the de-dollarization debate suggests.
Andrew Bonney
Article
Unlocking India’s Urban Dividend
As India undergoes a demographic transition, its cities will be its economic powerhouse—but only if it accurately captures city growth and empowers cities to support their citizens.
Apoorva Jadhav
Commentary
Affordability Is the Top Issue on California’s November Ballot
Direct democracy is the political wildcard in the state’s midterm election.
Mark Baldassare, Ian Klaus
Paper
The Hormuz Conflict and the Limits of Renminbi Internationalization
Potential Strait of Hormuz transit “fees” and Iran’s renminbi use are bringing attention to Beijing’s push to become a “financial power,” particularly in energy markets. Underdeveloped aspects of China’s financial system and its dollar dependencies still constrain the renminbi’s geoeconomic significance, but recent events may spur policy shifts aimed at changing these dynamics.
Robert Greene

More Work from Carnegie Endowment for International Peace

Article

Build, Not Buy: The Semiconductor Lesson that Indian AI Experts Must Learn

As AI grows more sophisticated, as the supply chains that power it become more contested, and as access to frontier models becomes geopolitically charged, India must begin to ask a different set of questions. Not what applications it can build on someone else’s infrastructure but what the world needs.

Konark Bhandari

Commentary

Sada

The Channels of China’s Currency Promotion in Gulf Markets

Is the Gulf moving beyond the dollar? This article examines how China is expanding the renminbi's role across Gulf markets, what that means for regional finance, and why the future of global currencies is more complex than the de-dollarization debate suggests.

Andrew Bonney

Article

Unlocking India’s Urban Dividend

As India undergoes a demographic transition, its cities will be its economic powerhouse—but only if it accurately captures city growth and empowers cities to support their citizens.

Apoorva Jadhav

Commentary

Affordability Is the Top Issue on California’s November Ballot

Direct democracy is the political wildcard in the state’s midterm election.

Mark Baldassare, Ian Klaus

This photo obtained by AFP from the Iranian news agency Tasnim shows an Islamic Revolutionary Guard Corps (IRGC) boat allegedly taking part in an operation to seize ships attempting to cross the Strait of Hormuz, on April 21, 2026.

Paper

The Hormuz Conflict and the Limits of Renminbi Internationalization

Potential Strait of Hormuz transit “fees” and Iran’s renminbi use are bringing attention to Beijing’s push to become a “financial power,” particularly in energy markets. Underdeveloped aspects of China’s financial system and its dollar dependencies still constrain the renminbi’s geoeconomic significance, but recent events may spur policy shifts aimed at changing these dynamics.

Robert Greene