The Dangerous Dozen

The noose around 12 BIG CORPORATE DEFAULTERS tightens as bankers invoke bankruptcy proceedings for quick redressal

- Anand Adhikari & Nevin John

INDIA'S BIGGEST loan defaulters are under the hammer of the seven month old Insolvency and Bankruptcy Code (IBC) for quick resolution or eventual liquidation. The next 180 days promise to be high drama as promoters and bankers slug it out in the open. State Bank of India and ICICI Bank have already kick started bankruptcy proceedings against Monnet Ispat, Alok Industries and Jyoti Structures at the National Company Law Tribunal (NCLT), the adjudicating authority for bankruptcy.

Welcome to the first of its kind bankruptcy legislation designed to fast track resolution of bad loans in a time bound manner--something unheard of in India. In the past, banks used to happily evergreen loans and litigious promoters had their way whenever banks turned hostile. But, not any more, as resolving bad loans is the top priority of the present government and the Reserve Bank of India or RBI.