A bitter fight has erupted between the asset reconstruction companies (ARCs) and stressed firms, with the latter complaining to the Reserve Bank of India saying the ARCs are indulging in asset stripping with the help of foreign funds.
In a letter to the RBI, one of the stressed company pointed out that after taking over the debt from the banks, ARCs are giving backdoor entry to vulture funds through an effective “benami structure”, which is currently available only for reconstruction or securitisation companies. When contacted, a top official of an ARC said the ...
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