More than 2,100 companies settle bank dues worth INR 83,000 crore

As per the data compiled by the ministry of corporate affairs, more than 2,100 companies have cleared their outstanding amount. Most of which came after the government amended the IBC to bar the promoters of the companies that had been classified as nonperforming assets from bidding for the companies where the National Company Law Tribunal initiated action. When dues are not paid for 90 days, the loan is classified as an NPA.

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The move faced severe criticism from the top names in the corporate sector including the Gaurs of Jaiprakash Group, Ruias of Essar and Singles of Bhushan Group. They were locked out of the resolution process and there were fears that the bids might not be aggressive, which could result in the lenders having to recover only a small part of the loan. The government states that this move was meant to ensure that the promoters did not walk away with the same asset at a huge discount. However, there was a clause inserted which allowed the promoters to participate in case they cleared their dues.