Page 13 - Il&fs

First arrest in IL&FS case, former vice chairman Sankaran in SFIO custody

Hari Sankaran, a former vice chairman of IL&FS, was arrested in Mumbai on Monday for fraud and causing wrongful loss to the troubled infrastructure lender, official sources said.

NCLAT asks IL&FS to give details of debt-ridden group's dues

The National Company Law Appellate Tribunal (NCLAT) Friday asked the newly-appointed board of debt-ridden IL&FS to submit details of the group's dues. A two-member bench headed by Chairman Justice S J Mukhopadhaya also clarified that there was no stay on the government to proceed with the resolution plan for IL&FS companies. During the proceedings, the bench said that whatsoever step is taken by the newly-appointed board and the government for resolution of IL&FS and its over 300 group companies would have to be passed by the appellate tribunal. The NCLAT has listed the matter for next hearing on April 8. The bench also said it would hear the banking regulator RBI on moratorium against IL&FS group companies at the next hearing. During the proceedings, senior secured financial creditors of IL&FS asked the tribunal to direct the 'amber' classified companies to discharge their debt liability. Under its resolution plan, the government has categorised IL&FS group ...

IL&FS crisis highlights need to tighten regulation of credit rating firms

In the US, S&P and Moody's had to pay $1.37 billion and $864 million, respectively, as settlements with federal and state authorities in January 2017

IL&FS' systemic structural flaw

Its status as a Systemically Important Core Investment Company created an opaque, hydra-headed organisation

Don't make it a prestige issue, NCLAT tells RBI over IL&FS NPA rule

RBI had approached NCLAT seeking to implead itself as a party in the ongoing IL&FS case

RBI moves NCLAT over order on classification of IL&FS cos' debt as NPA

The RBI is seeking modification of the order passed by the tribunal which has provided moratorium on repayment of loans regarding the accounts of IL&FS and its over 300 group cos

Reflection on governance issues in IL&FS and L&T

A solution to motivational issues is yet to be found out. Therefore, the use of the stick is the only solution

The IL&FS mess

Audit report shows collapse of governance norms

IL&FS board charges former directors of money laundering, criminal intent

Tasked with cleaning up of mammoth financial mess at embattled IL&FS, its government-appointed board has charged 14 former directors of group firm IL&FS Financial Services Ltd (IFIN) of facilitating money laundering, sanctioning loans in violation of rules and causing "huge financial stress and losses" to the company. In show-cause notices issued to the 14 former directors, the new management has charged them of having "sanctioned loans deceptively to external and group companies with sole objective to infringe RBI guidelines of excessive exposure of IFIN to intra-group companies." They have also been accused of extending loans for "criminal intent of falsification of repayment by a number of borrowers, including some entities associated with large corporate groups. The notices, dated February 27, have asked former directors to reply within seven days upon receipt as to why departmental and legal actions should not be taken against them for their "misconduct, dereliction of ...

Grant Thornton's IL&FS audit finds irregularities in deals worth Rs 13K cr

Grant Thornton in its report on debt ridden IL&FS Group has identified various financial irregularities in deals with financial implications of over Rs 13,000 crore during special audit conducted by the firm. IL&FS Group, which operates at least 24 direct subsidiaries, 135 indirect subsidiaries, six joint ventures and four associate companies, is sitting on debt of Rs 94,000 crore. The report has identified 29 instances where it appears that the loans disbursed to borrowers were in turn utilised by their group companies to repay the existing debt obligations with IL&FS Financial Services Limited (IFIN). These together has a financial implications of Rs 2,502 crore, said the draft report prepared for all high-value transactions undertaken by IL&FS Limited and few of its group companies for the period commencing from April 1, 2013 to September 30, 2018. The report said there are 18 instances where the Commercial Operations Date (COD) ultimately approved loans to those ...

Poor prescription

NCLAT ruling on IL&FS undermines RBI's role

IL&FS lenders to continue making provisions for loans to the group

Only the current earning flows should be used to make provisions and future cash flows should not be loaded with the obligation to make provisions.

50% IL&FS assets on block, 22 group firms servicing loans: Injeti Srinivas

Corporate affairs secretary justifies NCLAT ruling on non-classification group accounts as NPA, saying it is a one-off order, keeping in mind national interest

MFs have Rs 2,000-cr debt in IL&FS firms; NCLAT to hear case on March 12

Debt fund managers hopeful of priority repayment

Banks can't declare accounts of debt-ridden IL&FS as NPA without NCLAT nod

No bank or financial institution can declare the accounts of debt-ridden IL&FS and its group companies as non-performing assets (NPAs) without NCLAT's permission, the appellate tribunal said Monday. A two-member National Company Law Appellate Tribunal (NCLAT) bench, headed by Chairman Justice S J Mukhopadhaya, said that this is done in the interest of IL&FS debt resolution plan. "No IL&FS or its subsidiaries' account to be declared NPA by any financial institution without approval from NCLAT," the appellate tribunal said. The tribunal's direction came during the hearing over the government's plan for the resolution of IL&FS group companies. During the last hearing on February 11, NCLAT had allowed 22 companies of IL&FS group, which were classified in the green category based on their financial health, to service their debt obligations. Besides, it had also approved the appointment of former Supreme Court judge Justice D K Jain to supervise the resolution process of

ED files money laundering case against IL&FS former chairman, 19 others

The move comes after the Delhi EOW registered a FIR in December last year

IL&FS crisis: ED files PMLA case, conducts raids in Delhi-NCR, Mumbai

The Enforcement Directorate (ED) Wednesday conducted searches at multiple locations in connection with the IL&FS payment default crisis, officials said. They said the central probe agency has registered a case under the Prevention of Money Laundering Act (PMLA) in the alleged payment default case and raids were being conducted against executives linked to the Infrastructure Leasing and Financial Services (ILFS). The raids are on in Mumbai and locations in Delhi-NCR, they said. IL&FS has defaulted on payment of loans to SIDBI and along with its subsidiaries has a combined debt of over Rs 91,000 crore. The debt crisis at the infrastructure lender came to light following a series of defaults by its group companies beginning September 2018. IL&FS is sitting on a debt pile of about Rs 91,000 crore.

Parliament panel reccomends setting up enquiry commission into IL&FS crisis

The Standing Committee on Finance, in its report presented in Parliament, said the government has since intervened and re-constituted the company's board and the matter is being heard by NCLT

NCLAT allows 22 IL&FS group companies to service debt obligations

70 out of the 169 firms of the IL&FS group have been placed under 3 categories based on their ability to service routine debt

NCLAT allows 22 IL&FS group companies to service their debt obligations

The National Company Law Appellate Tribunal Monday allowed 22 companies of crisis-hit IL&FS group to service their debt obligations. Besides, a two-member bench headed by Justice S J Mukhopadhaya approved appointment of former Supreme Court judge Justice D K Jain to supervise resolution process of IL&FS group. The appellate tribunal also lifted moratorium and allows 133 IL&FS firms incorporated outside India to continue with the resolution process. "We allow (companies under green categories) the board to permit the company to service debt obligations as per schedule," the firm said. The NCLAT was hearing the government plea over IL&FS group.