“In view of the National Company Law Appellate Tribunal’s (NCLAT) order dated May 2, 2019 in respect of Company Appeal (AT) No. 346 of 2018 and I.A. No. 1139 of 2019, the instructions contained in the above mentioned circular stand withdrawn," said the RBI in a notification on Wednesday.
The defaults by the IL&FS entities caused liquidity squeeze in the markets, affecting the non-banking financial companies and the housing finance companies adversely. The group companies have a total debt of more than Rs 94,000 crore.