(ET)
The Allahabad high court will continue on Tuesday hearing of the case filed against Reserve Bank of India circular by power companies . The court heard Reserve Bank of India counsel on Monday, sources said.
On August 14th, the power companies presented their arguments against the circular. The companies cited the 40th Parliamentary Standing Committee report that noted that the outcomes of RBI’s revised framework with respect to the electricity sector have been disappointing with bank non-performing assets (NPAs) rising.
RBI has in all hearings declined the need for an extension sought by the power companies for completing resolution proceedings for stressed assets. The apex bank in a letter to the department of financial services also blamed the government for power sector NPAs through policies favoring the PSUs.
