Restructuring of Doubtful accounts under JLF :
In terms of paragraph 4.3.6 of the circular DBOD.BP.BC.No.97/ 21.04.132/2013-14 dated February 26, 2014, while generally no account classified as doubtful should be considered by the JLF for restructuring, in cases where a small portion of debt is doubtful i.e. the account is standard/substandard in the books of at least 90% of creditors (by value), the account may then be considered under JLF for restructuring.
In partial modification of the above, it has been decided that a JLF may decide on restructuring of an account classified as ‘doubtful’ in the books of one or more lenders similar to that of SMA2 and sub-standard assets, if the account has been assessed as viable under the Technology Economic Viability (TEV) and the JLF-EG concurs with the assessment and approves the proposal.