RBI circular on power firms: Allahabad HC reserves order, judgment likely before August 27

NEW DELHI: The Allahabad High Court has reserved judgment on a case filed by power producers against the controversial Reserve Bank of India circular on stressed assets, sources said.

However, an order is expected before Aug 27-- the deadline for completing resolution proceedings for the stressed assets, the sources said.
The arguments of both sides have concluded, they added.


The RBI circular mandates banks to identify projects with one day default as stressed assets and conclude the resolution proceedings in 180 days.

The circular came into effect on March 1 and 180 days conclude on Aug 27.