The request from the lead lender to the bankrupt cell operator comes days after UV Asset Reconstruction Company – which has proposed to purchase Aircel and most belongings of one other bankrupt telco Reliance Communications- met the finance minister and sought her intervention on this case.
The Reserve Bank of India had rejected UV Asset Reconstruction Company’s decision plan for Aircel on the grounds that ARCs can’t infuse fairness in an bancrupt firm on the decision stage.
“SBI has approached the finance ministry for a listening to on this situation,” an official aware about the event stated. “Their request is to contemplate modifications to the Sarfaesi (Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest) Act and produce it at par with IBC (Insolvency and Bankruptcy Code) in order to permit ARCs to behave as decision candidates (RAs) and make investments fairness in distressed companies,” the particular person stated. “Not permitting ARCs to behave as RAs jeopardises a number of distressed asset resolutions, that’s the financial institution’s said stance,” the official stated.
SBI and UVARCL did not reply to ET’s queries as of press time Monday.
RBI’s rejection of Aircel decision plan introduced into focus the battle between the insolvency legislation and the Sarfaesi Act on whether or not an ARC can bid for bankrupt companies or not. World News Today 24X7