Business

Govt Moves NCLT To Takeover IL&FS Management

JAVED SAIFI | 0
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| October 1 , 2018 , 16:32 IST

The Central government on Monday has moved the National Company Law Tribunal (NCLT) to change the management of the debt-ridden Infrastructure Leasing and Finance Services (IL&FS)

A government counsel submits before the Tribunal that “Continuity of current board prejudicial to public interest. Govt seeks suspension of entire board and seeks appointment of 10 members on board.”

Debt defaults by certain group entities of IL&FS group have triggered fears of a liquidity crisis in the financial markets.

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

Also Read: Centre Using Public Money To Save Debt-Laden IL&FS Group, Says Rahul Gandhi

In the tweet on Sunday, Gandhi alleged that PM Modi is bailing out the IL&FS group which has a long-term debt liability of around Rs 91,000 crore via public savings in LIC and the State Bank of India (SBI).

Gandhi said, "Lights, Camera, Scam, in 2007 when Modi was the Gujarat Chief Minister, IL&FS was given the 'GIFT CITY' project worth Rs 70,000 crore. Till date, no work has been achieved under the plan."

Gandhi also said that in 2018, Modi was bailing out the same company via LIC an SBI.

On Saturday, the cash-strapped company said it was planning to have a "successful" rights issue and would sell its assets to repay creditors.

(With Inputs From IANS)