04 June 2019
National Company Law Appellate Tribunal (NCLAT) has allowed banks to declare as non-performing assets the accounts of IL&FS and its group companies that have defaulted on payments
Banks can now declare defaulting accounts of debt-ridden Infrastructure Leasing and Financial Services (IL&FS) and its group companies as non-performing assets, but cannot initiate recovery proceedings. A Bench headed by National Company Law Appellate Tribunal (NCLAT) Chairman Justice SJ Mukhopadhaya on Thursday lifted the freeze on banks from declaring defaulting accounts of the company and its 300 entities as NPAs.