As web-based media sites publish a woman's allegations of sexual harassment against CJI Ranjan Gogoi, the Supreme Court Secretariat denies all charges and Justice Gogoi recuses himself from passing orders. He says it is a larger conspiracy to destabilize the judiciary

News Snippets

  • BCCI ombudsman fines Hardik Pandya and KL Rahul Rs 20 lakhs each for misogynistic comments on the chat show Koffee With Karan
  • Buzz around BJP fielding Sunny Deol from Amritsar as Amit Shah meets the actor
  • EC bans web series on Modi and asks the channel to take down all content
  • #MeToo reaches Supreme Court. Former junior research assistant levels sexual harassment charges against CJI Ranjan Gogoi
  • In West Bengal, official in charge of EVMs goes missing but EC says it is for personal reasons
  • Mulayam and Mayawati share the stage at Mainpuri to bury 24-year old enmity
  • After nation-wide outrage, Pragya apologizes and says Karkare was a martyr who was killed by enemy bullets
  • BJP says Pragya's statement are her personal views
  • Pragya Thakur, Malegaon blasts accused and BJP candidate from Bhopal, says police officer Hemant Karkare of anti-terror squad, tortured her in jail and was killed in the 26/11 operations due to her "curse"
  • PM Modi defends choice of Pragya Thakur as BJP's contestant from Bhopal
  • India suspends trade across the Line of Control with Pakistan
  • PM Modi says Pak PM Imran Khan tried to influence Indian elections with "reverse swing" by making comments favouring him
  • 66% voting recorded in phase 2. sporadic violence reported from many places, especially West Bengal
  • Election Commission bans chowkidar chor hai campaign in MP
  • BJP workers' son commits suicide by hanging from a tree in West Bengal
RBIvsSC
RBI’s “One-Size-Fits-All” Circular Quashed By The Supreme Court

By Sunil Garodia

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator. Writes for a number of publications.

The RBI circular of February 12, 2018, that was also opposed by the government and which was the main reason that led to the then governor Urijit Patel’s resignation, has been struck down by the Supreme Court. The circular had tried to speed up bankruptcy proceedings by allowing banks to refer to the NCLT cases over Rs 2000cr which defaulted even by a day in repayments.

But where the RBI erred was by treating all borrowers equally. Its circular showed that it thought one size would fit all and it did not take the peculiarities of different sectors into consideration. It did not revise the circular even when representations were made from several borrowers, especially from the power sector, highlighting the external factors – like non-availability of coal and non-payments of dues from state power utilities, among others – that prevented them from making timely payments. Finally, it was inflexible even when the government tried to show it reason. Although the insolvency process has been speeded up after the circular was issued – as data available with the RBI shows – it comes to naught as the Supreme Court has now struck it down.

The repercussions will be disastrous for the economy in general and lending banks in particular. Already, the international credit ratings agency Moody’s has termed the SC order as being “credit negative” for banks. The least the RBI can now do is to study the Supreme Court order with a fine toothcomb and issue a new circular that takes everything – the law and the concerns of the borrowers – into consideration to come out with a new circular that does not spare willful defaulters but remains on the right side of the law. It is imperative that there is no let up in the fledgling insolvency process in the country while at the same time borrowers who have genuine concerns are allowed more time to pay up.

In Depth

holymenandthecurse

Pragya Thakur, Sakshi Maharaj And The Power Of The Curse

Editor's Pick

chowkidar stay alert

Yes, I Would Like My Children To Be Chowkidars

Election Special - National

EC acts

EC Acts To Ban Yogi, Mayawati, Maneka and Azam Khan From Campaigning

Election Special - States

evms and naidu

Who Is Defeating Chandrababu Naidu – Jagan Reddy Or EVMs?

mobiles