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Former Board Members Of IL&FS Group Blames Stakeholder LIC For Crisis

JAVED SAIFI | 0
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| October 3 , 2018 , 14:59 IST

Former board members of the debt-ridden Infrastructure Leasing & Financial Services (IL&FS) group have criticized the largest stakeholder Life Insurance Corporation (LIC) for crises, alleging discriminatory actions, reported by Economics Times on Wednesday.

Former board members said that the LIC was aware of the crisis situation at IL&FS group that was building up from the last 4 years.

One of the former directors was quoted as saying, “Before the collapse, they should have taken precautionary measures as, technically, LIC was not just an owner of the company but was the largest shareholder of the company.”

“It neither behaved as a shareholder nor a promoter,” the second former director said.

Also Read: Govt Moves NCLT To Takeover IL&FS Management 

Recently, the National Company Law Tribunal (NCLT) had approved the takeover of the IL&FS group by the government under the article 241 of the Companies Act.

The appointed new six directors on the IL&FS board are Managing Director of Kotak Mahindra Bank Uday Kotak, former SEBI Chief GN Vajpai, ICICI Bank Chairman GC Chaturvedi, Tech Mahindra's Vineet Nayyar and former bureaucrats Malini Shankar and Nand Kishore replacing the previous members.

The development comes a day after Congress President Rahul Gandhi alleged that public money was being used to bail-out IL&FS.