The government has set a March deadline for lenders and resolution professionals (RPs) to resolve nine of the dozen high-value insolvency cases, with Essar identified for special focus.
The overall message is to speed up resolution of cases to signal that the Insolvency & Bankruptcy Code (IBC) is providing the desired results in unlocking bank money that was blocked.
The dozen high-profile cases owed around Rs 2.5 lakh crore to lenders. These cases are yet to be sorted out even after 18 months, way above the 270-day deadline in the law.
Given the massive public interest in Jaypee Infra tech, which is yet to deliver over 20,000 ..
apartments, villas and plots to home buyers, the government has advised the RP to initiate steps, including seeking legal remedy to speed up a decision.
Sources said lenders pointed to the legal hurdle that required two-thirds of the banks as well as home buyers backing a resolution plan, which was proving to be difficult as those who did not vote were counted as ‘negative votes’.
“There was a suggestion that legal view should be sought on calculating the 66% vote based on those present and voting, instead of the entire electorate,” said a government source. The National Company Law Tribunal’s (NCLT’s) principal bench is yet to decide on a plea moved by lenders on the issue.