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BJP government’s wrong approach drove companies into insolvency: P Chidambaram

New Delhi | Former Finance Minister and Congress leader P Chidambaram today criticizing the current BJP government alleged that the current the government’s wrong policies have drove companies into insolvency.

He also said the Congress party’s Manifesto criticised the BJP government for its one-size-fits-all approach to the Non-Performing Assets problem adding the opposition party is vindicated by the Supreme Court

Taking on Twitter Chidambaram in a series of tweet wrote,” BJP government’s wrong policies broke the back of companies in the steel, power and coal sectors. Its wrong approach drove those companies into insolvency.”

Earlier on Tuesday the Supreme Court quashed the 2018 RBI circular that pertains to the provisions for declaring a company bankrupt even on a one-day overdue. The bench headed by Justice R.F. Nariman said, “We have declared the RBI circular ultra vires.”

Reserve Bank of India (RBI) on February 12, 2018 had issued a circular saying that lenders have to provide for resolution plan within 180 days in case of large account of ₹2,000 crore and above. It said that if a resolution was not found by August 27, Non Performing Asset (NPA) accounts should be sent to bankruptcy courts.

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