India’s Supreme Court Tuesday refused to halt a lower court from hearing cash-strapped power producers seeking protection from bankruptcy proceedings, Bloomberg News reported. The verdict of the two-judge bench headed by Rohinton F. Nariman ensures that lenders won’t be able to initiate insolvency proceedings against power producers who may have defaulted on loan repayments unless they are categorized as wilful defaulters. Power producers had challenged Reserve Bank of India’s revised debt servicing rules, which they say can push nearly 75 gigawatts of projects into bankruptcy.

India's government seems intent on abandoning good ideas for dealing with the country's banking crisis and encouraging bad ones, a Bloomberg View reported. Perhaps that shouldn't be surprising, given that the bureaucrats don't yet seem to have grappled with the real nature of the problem. The latest terrible proposal for dealing with the bad loans weighing down India's state-owned banks, which control more than two-thirds of deposits, is to create a "bad bank" -- an asset-management company that would take stressed assets off their balance sheets.

The head of one of India’s largest state-run banks says the government needs to ease its grip over the lenders or risk slowly killing off the sector, Bloomberg News reported. Tight government control makes it hard to attract talent or take the tough decisions needed to address the bad debts weighing down the banks, according to Ravi Venkatesan, the outgoing chairman of Bank of Baroda.

State-owned carrier Air India has sought 21.21 billion rupees ($309 million) of additional equity from the government for the fiscal year 2018-19 to make pending payments to its vendors, a source at the airline told Reuters on Monday. Air India owes about 18 billion rupees to its vendors, including lessors and banks that have demanded payment from the beleaguered airline, after the government's unsuccessful efforts to find a buyer for its 76 percent stake, the International New York Times reported on a Reuters story.

Vijay Mallya’s Force India Formula One team has been put into administration after a court hearing in London on Friday, deputy principal Bob Fernley said. “An administrator was appointed by the court for Force India F1 this evening,” he confirmed to Reuters. The team’s chief operating officer Otmar Szafnauer told reporters earlier that the team might have to enter some form of administration before it could emerge on a sounder financial footing, Reuters reported.

Reliance Communications has requested the Supreme Court to quash the insolvency process against it and prevent any challenge to its asset sale to Jio and Brookfield, The Economic Times reported. The Anil Ambani-owned telco told the top court that the value of its assets is getting eroded if these clauses are not removed since buyers are unwilling to go ahead otherwise.

Rolta India Ltd.’s attempt to reorganize about $500 million of defaulted bonds faces fresh opposition from a group of noteholders demanding an upfront payment before consenting to the restructuring, Bloomberg News reported. The group, which owns almost 20 percent of 2018 bonds issued by the technology company, has approached an investment bank and law firms to devise an alternative to the proposal by a rival set of creditors, according to Eric Kraus, a money manager at Moscow-based Nikitsky Capital.

Indian lenders struggling to recoup loans worth about $20 billion to troubled property developers have to contend with another challenge: A lackluster recovery from the worst home-sales slump this decade. To recover the dues, banks are taking control of land parcels and unfinished projects that can be sold along with loans, Bloomberg News reported. This comes at a time when home sales volumes have declined about 40 percent over four years and prices have dropped as much as 20 percent on average, said S.

India needs a strategy to get the government out of banking. Non-performing loans among state-owned banks -- a legacy of India’s socialist past which account for nearly 70 percent of deposits -- have crossed 5 percent of GDP, a Bloomberg View reported. The central bank has restricted lending at 11 of them and forced one, IDBI Bank Ltd., to sell itself to the government-owned Life Insurance Corporation of India. State banks have repeatedly been a burden on the exchequer and will almost certainly continue to be so.

IBBI Chief M.S. Sahoo on Thursday said the process to put in place a framework for cross-border insolvency cases is under way. The government is keen to introduce a globally accepted and well-recognised cross-border insolvency framework, which would also make India an attractive investment destination for foreign creditors, given the increased predictability and certainty of the insolvency process, The Hindu reported. Asked about the status of cross-border insolvency, Mr. Sahoo said, comments have been invited.. and have also been received.