India Inc stares at Rs 9,000-crore hit on IL&FS debt in private PF, pension

Loss in principal and interest income by these funds have to be made good by companies

After mutual funds (MFs) and insurance companies, India Inc is likely to be the next victim of defaults by the Infrastructure Leasing & Financial Services (IL&FS) group firms. Almost 2,000 companies whose private provident and pension funds have invested in non-convertible debentures of IL&FS group firms are staring at the prospect of booking losses to the tune of Rs 9,000 crore or more if the interest income is added. And, these companies will have to make good these losses, according to the guidelines of the Employees’ Provident Fund Scheme (EPFS), 1952. 

The long list of companies includes marquee names like Infosys,