Sale of IL&FS group among multiple options: Official

The government is considering the sale of IL&FS as a group among other options as a way out for the defaulting infrastructure lending company, Corporate Affairs Secretary Injeti Srinivas said on Monday.

He, however, noted that selling the group as a whole might not be an easy task.

"As far as IL&FS is concerned, the report which was submitted to the NCLT (National Company Law Tribunal) articulates the approach. So, it could be the best scenario IL&FS as a group enterprise being sold as a going concern," Srinivas told reporters at the sidelines of an event organised by the Competition Commission of India.

"That is the best scenario case. But there are serious issues and the likelihood of such an outcome is limited," he added.

The two other alternatives looked at are separate sale of its verticals and sale of its assets, according to Srinivas.

The Secretary said that the government may eventually go ahead with a combination of all the three options.

"What seems most probable is that you will have a combination of all the three approaches. All the three approaches in some sort of permutation-combination can ultimately be the way out," Srinivas told reporters.

The government last week submitted its report on the IL&FS matter to the Mumbai bench of the NCLT, outlining its plans for the debt-laden company.

Regarding actions taken to address the liquidity concerns in Non-Banking Financial Companies, he said: "It has been made very clear that the government and the central bank are taking adequate measures to address the immediate sectoral concerns."

--IANS

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