Essar case: RBI wins but bruises remain

Essar case: RBI wins but bruises remain: The Gujarat HC's decision to dismiss Essar Steel's petition came as a huge relief to RBI...





RBI’s role in Insolvency Resolution

This refers to the RBI deputy governor’s observations during the interview given to Business Standard and Shyamal Majumdar’s piece “Essar case: RBI wins but bruises remain” (Powerpoint, July 26). One feels that the institutional mind of India’s central bank is more graceful and mature when media, judiciary and a host of ‘victims’ affected by the performance of mandated role by RBI comes out in public, with what can be perceived as genuine criticism to scathing attack. S S Mundra’s observation ‘the wording was an ‘innocent oversight’ should satisfy those who are still up in arms against RBI.
Long monotonous arguments in the court rooms and a compulsion to write long judgments makes the bench occasionally stray away to make comments in ‘jest’ during hearings or include loosely hanging observations in decrees which are later quoted out of context by a sensation-hungry media or writers who want to make their columns interesting or spicy.
Let us remember that RBI is participating in the ‘Insolvency Resolution’ process, not by choice. Majumdar has quoted court’s observation that ‘those with professional degrees may not necessarily be competent to run companies’. That again should be skipped as another ‘innocent oversight’ in expressing their Lordship’s views, as, when you point an accusing finger to an unspecified target, all other fingers go in the opposite direction!
Indian financial sector is going through a transition and as the responsibility of other sectors for the chaotic situation gets identified and fixed, the health of Indian Economy will be restored and economic growth will not remain a jugglery of numbers. If banking system has ‘stressed assets’ of a level higher than the tolerance limits, there are individuals and corporates who have gained in the bargain, who are making a last effort to get away by maligning the regulator and supervisor of banks. This time around, ‘WE THE PEOPLE’ are more vigilant and are watching the game closely.
M G Warrier, Mumbai



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