The Reserve Bank of India (RBI) has rejected a resolution plan that proposed selling Aircel's assets to UV Asset Reconstruction Company (UVARC).
The plan was approved by the National Company Law Tribunal (NCLT) in June.
The central bank denied permission for the resolution plan stating that it did not conform with guidelines laid down for asset reconstruction companies (ARCs), The Economic Times reported.
Moneycontrol could not independently verify the story.
UVARCL, Deloitte and the RBI had not yet responded to queries sent by The Economic Times.
The RBI also said the plan did not conform to the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act, 2002, the report said.
The SARFAESI Act does not permit ARCs to submit resolution plans, but the Insolvency and Bankruptcy Code (IBC) allows it.
UVARCL and Deloitte might approach the the Ministry of Corporate Affairs (MCA) and the Insolvency and Bankruptcy Board of India (IBBI), the report added.
"The IBC is complementary and not contradictory to the SARFAESI Act and both are enacted to resolve the financial assets by restructuring to ensure restoration of economic value. The IBC being a later legislation overrides other laws unless inconsistent with any other extant law," a lawyer told the paper.
ARCs together might seek a clarification from the RBI, since many have bid for assets of companies facing insolvency proceedings, the report said.
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