The government is open to providing more powers to the Reserve Bank of India (RBI) to direct lenders to take action on stressed assets, a senior finance ministry official told ET. There is a growing view in the government that there has to be some regulatory supervision over debt resolution by the RBI, The Economic Times reported. “It cannot be left to the discretion of banks — there has to be some regulatory supervision, and that should be from the banking sector regulator,” said the official.

Homebuyers and lenders of debt-laden Jaypee Infratech Thursday started voting on state-owned NBCC's bid to acquire Jaypee group's realty firm and complete the construction of over 20,000 flats, Business Standard reported. The voting process will end on Sunday and the outcome would be declared on May 20. The financial creditors would vote for the second time on the resolution plan for Jaypee Infratech, a subsidiary of Jaiprakash Associates Ltd (JAL). On May 3, the financial creditors rejected Mumbai-based Suraksha Realty's bid through voting process.

The chief executive and two other senior figures at Jet Airways have quit, the Indian company said on Tuesday, further eroding any hopes of a rescue of the debt-laden carrier that grounded operations last month, Reuters reported. Jet, once the biggest private carrier in the country, owes vast sums to its lessors, employees, fuel suppliers and other parties. It stopped all flights from April 17 after its lenders refused to give it any more funds to keep the carrier flying.

The National Company Law Appellate Tribunal (NCLAT) has decided to hear the Essar Steel insolvency case dispute on a daily basis for an early resolution, The Hindu Business Line reported. ArcelorMittal, the winning bidder, has been fighting to takeover the steel company for over one-and-half year but there is no sign of a resolution yet. Arguing on behalf of Essar Steel’s financial creditor Standard Chartered Bank (SCB) on Monday, senior advocate Kapil Sibal said ArcelorMittal’s bid is only ₹39,500 crore rather than ₹42,000 crore as claimed by the company in the Supreme Court.

Small borrowers with annual income up to ₹60,000 are likely to get automatic relief for any unsecured loans they are unable to repay, according to a new scheme for personal insolvency resolution that the government has prepared, Mint reported. The new scheme that will replace colonial era laws dealing with personal bankruptcy will also give breathing space to those who can repay loans. It will also protect some of their assets from dues recovery to help in their subsistence.

Lenders of debt-ridden dairy firm Kwality on Monday decided to carry out voting on extending the May 15 deadline for submitting the resolution plan by interested bidders, including Haldiram and Kotak group firm, sources said, Mint reported. The lenders would also vote on seeking extension of insolvency proceedings by 90 days, they said. As many as five companies -- Haldiram, Kotak fund, LVP Foods, Aion and TPG Capital -- have expressed interest to bid for acquiring Kwality.

The last stronghold in embattled tycoon Anil Ambani’s phone carrier-to-power empire is also developing fault lines. Reliance Capital Ltd., his financial services business that almost doubled its profit in five years, had largely remained insulated from the distress plaguing the wider conglomerate, Bloomberg News reported. Now, the company that controls India’s fifth-biggest mutual fund, is racing to close a planned $2 billion of asset sales to bolster its finances after cash dwindled to 110 million rupees ($1.6 million) as of March, according to CARE Ratings.

Troubles among India’s non-bank financiers will persist for at least a year even if the danger of a full-blown financial crisis has passed, according to the head of the nation’s most valuable bank, Bloomberg News reported. Tighter regulatory oversight and asset sales have staved off the worst of the problems afflicting India’s non-bank financial firms following last year’s defaults by Infrastructure Leasing & Financial Services Ltd., according to HDFC Bank Ltd.’s Managing Director Aditya Puri.

GMR Infrastructure Limited (GIL) announced execution of resolution plan for its stressed GMR Rajahmundry Energy Limited (GREL) – 768 MW gas-fired power plant in Andhra Pradesh, Business Standard reported. The company informed the exchanges on Friday morning that it has paid a portion of the sustainable debt of the project. The resolution plan which has been approved by the lenders of the project consisted of reduction of total debt of Rs 2353 crore to sustainable debt of Rs 1412 crore.

An insolvency professional (IP) may not find it easy to wriggle out of an existing transaction because of the difficult situations faced during the corporate insolvency resolution or liquidation process. This is because the insolvency regulator, IBBI, has advised the Insolvency Professional Agencies (IPAs) — who register the IPs with them — not to ordinarily accept ‘temporary surrender’ of professional membership of an IP while doing the CIRP or individual insolvency resolution and individual bankruptcy, The Hindu Business Line reported.