Power companies are in focus today after the Allahabad High Court rejected the companies plea to ease RBI rules on bad loans. This means banks can now take these assets to the bankruptcy courts and look at write-offs.
The court has, however, allowed the affected companies to try the legal route for individual grievances. This puts at risk 34 stressed assets with total debt of Rs.1.74 trillion, of which 12 companies are expected to immediately face proceedings.
The Supreme Court today will hear a transfer petition filed by the RBI to get all the cases filed against its February 12 circular by all affected sectors to a single Bench in Delhi.
GMR Infra went down 2% at Rs.18.60 though there are reports stating that Adani Power is very close to acquiring GMR Energy. Monnet Ispat is down almost 5% at Rs.14.20. Lanco Infra fell over 4% to hit a low at 70 paise on the BSE.