NCLAT allows banks to declare IL&FS accounts as bad loans

The National Company Law Appellate Tribunal (NCLAT) on Thursday allowed banks to declare the defaulting accounts of IL&FS group as bad loans. It, however, clarified that banks cannot initiate recovery process against the group and its 300 entities. The appellate tribunal had in February prohibited banks from recognising any IL&FS group accounts as bad loans without seeking its approval.