India's War on World’s Worst Bad-Debt Pile Stalled by Regulators

India’s battle against the world’s worst bad-loan ratio is being stalled by some unforeseen parties: regulators and federal investigators, Bloomberg News reported. A spate of legal challenges mounted by the country’s markets regulator, anti-money-laundering agency and its tax department accentuate conflicts between bankruptcy law and other regulations that pre-date them. In many cases, the court battles being fought by these agencies to hang on to powers to seize and sell assets of those violating their rules are derailing a 270-day resolution deadline set by the insolvency law. Time-bound resolutions under bankruptcy law are the key to cleaning up $190 billion stressed loans quickly, helping banks dodge higher provisions attached to missing resolution timelines. Read more

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