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
The Kremlin Can No Longer Postpone Hard Economic Decisions
Depleted financial reserves and a shrinking tax base mean it is no longer possible to simultaneously deliver high defense spending, price stability, and economic growth.
Alexandra Prokopenko
Commentary
Carnegie Politika
As It Turns 25, the Shanghai Cooperation Organization Reflects the New World Order
With the growth in points of friction between the great powers, organizations like the SCO will continue to play a role in the strategic adaptation of the smaller powers caught between them.
Temur Umarov
Commentary
Carnegie Politika
Russia’s Elite Conflict Over Internet Restrictions Does Not Herald Regime Collapse
A much-discussed disagreement over internet restrictions in Russia was never an existential threat for Putin: It was about elite groups protecting their interests.
Alexandra Prokopenko
Commentary
Carnegie Politika
Could Migrants From India and Africa Solve Russia’s Labor Shortage?
The demands of the Kremlin’s war in Ukraine, demographic problems, and public hostility toward Central Asians mean Russia does not have enough workers.
Salavat Abylkalikov
Commentary
Carnegie Politika
Russian Market Sours for Belarusian State Companies
Minsk’s faith in the future of its larger neighbor’s economy is fading as Belarusian firms in Russia see record losses.
Olga Loiko

More Work from Carnegie Russia Eurasia Center

Commentary

Carnegie Politika

The Kremlin Can No Longer Postpone Hard Economic Decisions

Depleted financial reserves and a shrinking tax base mean it is no longer possible to simultaneously deliver high defense spending, price stability, and economic growth.

Alexandra Prokopenko

Commentary

Carnegie Politika

As It Turns 25, the Shanghai Cooperation Organization Reflects the New World Order

With the growth in points of friction between the great powers, organizations like the SCO will continue to play a role in the strategic adaptation of the smaller powers caught between them.

Temur Umarov

Commentary

Carnegie Politika

Russia’s Elite Conflict Over Internet Restrictions Does Not Herald Regime Collapse

A much-discussed disagreement over internet restrictions in Russia was never an existential threat for Putin: It was about elite groups protecting their interests.

Alexandra Prokopenko

Commentary

Carnegie Politika

Could Migrants From India and Africa Solve Russia’s Labor Shortage?

The demands of the Kremlin’s war in Ukraine, demographic problems, and public hostility toward Central Asians mean Russia does not have enough workers.

Salavat Abylkalikov

Commentary

Carnegie Politika

Russian Market Sours for Belarusian State Companies

Minsk’s faith in the future of its larger neighbor’s economy is fading as Belarusian firms in Russia see record losses.

Olga Loiko