The Supreme Court on Tuesday granted interim relief to stressed power firms, directing lenders to maintain a status quo on the Reserve Bank of India’s circular for banks to resolve these cases within 180 days. The apex court directed that all pleas filed by the central bank related to the February circular should be transferred to it and it will hear the matter on 11 November.
Several petitioners, including GMR Energy Ltd; RattanIndia Power Ltd, a Punjab-based textile company; Association of Power Producers (APP); Independent Power Producers Association of India; Sugar Manufacturing Association from Tamil Nadu and a shipbuilding association from Gujarat, had intervened in the matter in different courts.
“Supreme Court has granted status quo. Hence, no new petitions can be filed relying on the RBI circular and if any has been filed it cannot move further,” said senior advocate Mahesh Agarwal, representing GMR Energy and RattanIndia Power. “It will apply to power producers who were part of the associations including Association of Power Producers, Independent Power Producers Association of India. Some of the associations including a sugar manufacturing association from Tamil Nadu and a shipbuilding association from Gujarat had challenged RBI’s circular and this relief will be extended to them as well.”