Banks to refer 23 bad debt companies to NCLT

Mumbai Dec 14: In a move to ensure companies repay their debt the Bankers have decided to initiate insolvency proceedings against 23 companies and the lenders have decided to file cases in the NCLT . Sources said that bankers have decided to take this decision as the RBI stipulated time frame for negotiations with the companies has ended.

Earlier the Reserve bank directed banks to refer these cases to NCLT if they fail t pay debt .currently these companies owe RS 1.4 Lakh crore to banks. The RBI had issued a second list of 27 companies which were responsible for NPAs.

Senior bank official told that "Except for Anrak Aluminium, Jayaswal Neco Industries, Soma Enterprises and Jaiprakash Associates, all other accounts are going to the NCLT (for resolution)".

The companies which would be referred to NCLT include
# Asian Color Coated Ispat
# Castex Technologies
# Coastal Projects
#East Coast Energy
#IVRCL
#Orchid Pharma
#SEL Manufacturing
# Uttam Galva Metallic
#Uttam Galva Steel
#Visa Steel
#Essar Projects
#Jai Balaji Industries
# Monnet Power
# Nagarjuna Oil Refinery
# Ruchi Soya Industries
# Wind World India

Bankers have said that "we have already decided a restructuring plan for Jayawal Neco Industries and Soma Enterprise." Sources said that " Anrak Aluminium has already agreed to the one-time settlement". ICICI Bank led Consortium has said that "a deep restructuring scheme for Jaiprakash Associates had already been decided ".

Sources said that Videocon Industries would also be referred to NCLT in future. Currently 11 out of 12 companies issued by RBI are referred to NCLT in June 2017 as the reserve bank issued a first list and
these owe 25 % of NPA.