IL&FS Mess

A stretched rescue process reveals critical deficiencies in India Inc's corporate layering and resolution mechanism worsened by the pandemic

IL&FS Engineering and Construction said on Thursday that Bangalore Elevated Tollway Pvt Ltd (BETPL) has been awarded an amount of Rs 492 crore towards claim filed by the company against the National Highways Authority of India (NHAI). IL&FS Engineering and Construction Company Ltd, an IL&FS group company, has 24 per cent stake in BETPL. IL&FS in a statement said it is entitled to about Rs 118 crore from the total claim awarded by the arbitration tribunal. BETPL is a special purpose vehicle (SPV) promoted for the development of four-lane elevated and six-lane road from Silk Board Junction to Attibele in Bengaluru. NHAI had awarded the project to BETPL on a built-operate-transfer (toll) basis in January 2006. The scope of project involved construction of a four-lane elevated highway. "BETPL had filed a claim against the NHAI in the tribunal as per the terms of the contract pertaining to matters related to additional cost incurred due to extension of construction period ..

The Enforcement Directorate (ED) has summoned MNS party chief Raj Thackeray in connection with its money laundering probe in the IL&FS alleged payment default crisis case, officials said on Monday. It had also called Unmesh Joshi, son of former state chief minister and Shiv Sena leader Manohar Joshi, in the same case after which he deposed before the central agency in Mumbai on Monday, they said. Unmesh Joshi's statement has been recorded under the Prevention of Money Laundering Act (PMLA), they said. Officials said the Maharashtra Navnirman Sena (MNS) chief has been asked to appear before the investigating officer of the case on August 22 at the agency's zonal office in Mumbai. The MNS dubbed as "political vendetta" the ED move to issue the notice to its cheif to join investigations. "Raj Thackeray created a sensation during the Lok Sabha poll campaign earlier this year. It had a significant impact on people and to avoid a similar challenge ahead of the Maharashtra Assembly ...

The pain is clear in both funding costs and share prices: a handful of shadow banks have lost between 40 per cent and 90 per cent of their market capitalisation over the past year

At present, banks do not share with CRAs details of a company's existing and future borrowing

The prosecution complaint was filed in a special court of the Prevention of Money Laundering Act, charging former senior management personnel of IL&FS along with Aircel founder C Sivasankaran

The corporate affairs ministry Thursday proposed to NCLT four auditing firms to restate the accounts of the crippled Infrastructure Leasing & Financial Services (IL&FS) and some of its subsidiaries to verify fraudulent transactions. The move comes even as the ministry awaits the NCLT view on banning Deloitte, Haskins & Sells and BSR Associates, which were the statutory auditors of these companies before going belly up. While Deloitte quit in FY18, BSR, which is an affiliate of KPMG, did so only in June 2019. The ministry had moved the NCLT in June seeking a ban on them, which has been questioned by these auditors on the powers of NLCT order a ban after an SFIO probe had established corruption and fraud in these companies. Though the names were disclosed publicly, ministry sources told PTI that the ministry Thursday proposed the Borkar & Mazumdar & Co and MM Chitale & Co for IL&FS and IFIN respectively; and GM Kapadia & Co and CNK & ...

In its interim order, NCLT also stated that the named former directors of the company cannot part with their shares in the IL&FS Group or in any subsidiary of the group, until further orders

This is because lenders to operating companies have the first right to cash flows from operating assets