Four days after Indias biggest lender rushed to sell its outstanding advances to Essar Steel, New Delhi appears to be stepping in to help expedite resolution of top 12 default cases that make up about a fourth of countrys bad-loan pile.
The government has called a meeting on Monday with resolution professionals and lenders of dozen cases, three people familiar with matter told ET.
Timelines have already run beyond what is permitted by law in many cases.
Three lenders from each of dozen cases are expected to attend meeting.
Injeti Srinivas, Secretary, Ministry of Corporate Affairs, and MS Sahoo, chairman of Insolvency and Bankruptcy Board of India (IBBI), will take stock of situation on technical impediments causing delays.
An email sent to MCA secretary remained unanswered until publication of this report.
The government wants to review progress of 12 large accounts referred under Insolvency and Bankruptcy Code (IBC), said IBBI in a communiqu.
The meeting will deliberate on possible solutions to bring these cases to a conclusion.
The main purpose is to find out factors leading to delays as government is concerned over abnormal delays in those large cases, said a senior executive with direct knowledge of matter.Essar Steel, one of largest bankruptcy cases, failed to repay about Rs 49,000 crore to its lenders.
The case has been running for one and half years.
The IBC permits a maximum of 270 days for settling a case.