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 Russia Eurasia Center

Commentary
Carnegie Politika
Does Russia Have Enough Soldiers to Keep Waging War Against Ukraine?
The Russian army is not currently struggling to recruit new contract soldiers, though the number of people willing to go to war for money is dwindling.
Dmitry Kuznets
Commentary
Carnegie Politika
Including Russia on the EU Financial Blacklist Will Hurt Ordinary People, Not the Kremlin
The paradox of the European Commission’s decision is that the main victims will not be those it formally targets. Major Russian businesses associated with the Putin regime have long adapted to sanctions with the help of complex schemes involving third countries, offshore companies, and nonpublic entities.
Alexandra Prokopenko
Commentary
Carnegie Politika
Why Didn’t the Ukraine War Turn Russia’s Ruling Class Against Putin?
A new book by Alexandra Prokopenko looks at why the Russian ruling class became the regime’s willing servants—and how they might fare in a post-Putin world.
Vladislav Gorin
Commentary
Carnegie Politika
Collateral Damage: The Frozen Foreign Assets of Middle-Class Russians
The volume of frozen private assets might seem insignificant compared with Russia’s sovereign reserves, but these are the savings of millions of people who believed that foreign securities were a safe investment and in the institution of private property.
Yulia Starostina
Commentary
Carnegie Politika
The Kremlin Has Weaponized Western Financial Checks to Punish Russian Dissidents
International compliance and anti-money laundering standards are currently formulated in such a way that the Western financial system does not differentiate between Russian political prisoners and ISIS militants.
Alexandra Prokopenko

More Work from Carnegie Russia Eurasia Center

Commentary

Carnegie Politika

Does Russia Have Enough Soldiers to Keep Waging War Against Ukraine?

The Russian army is not currently struggling to recruit new contract soldiers, though the number of people willing to go to war for money is dwindling.

Dmitry Kuznets

Commentary

Carnegie Politika

Including Russia on the EU Financial Blacklist Will Hurt Ordinary People, Not the Kremlin

The paradox of the European Commission’s decision is that the main victims will not be those it formally targets. Major Russian businesses associated with the Putin regime have long adapted to sanctions with the help of complex schemes involving third countries, offshore companies, and nonpublic entities.

Alexandra Prokopenko

Commentary

Carnegie Politika

Why Didn’t the Ukraine War Turn Russia’s Ruling Class Against Putin?

A new book by Alexandra Prokopenko looks at why the Russian ruling class became the regime’s willing servants—and how they might fare in a post-Putin world.

Vladislav Gorin

Commentary

Carnegie Politika

Collateral Damage: The Frozen Foreign Assets of Middle-Class Russians

The volume of frozen private assets might seem insignificant compared with Russia’s sovereign reserves, but these are the savings of millions of people who believed that foreign securities were a safe investment and in the institution of private property.

Yulia Starostina

Commentary

Carnegie Politika

The Kremlin Has Weaponized Western Financial Checks to Punish Russian Dissidents

International compliance and anti-money laundering standards are currently formulated in such a way that the Western financial system does not differentiate between Russian political prisoners and ISIS militants.

Alexandra Prokopenko