The communist leader and a senior minister in the Kerala Cabinet has been vocal in criticising the Centre, especially in matters related to GST and Ayushman Bharat.
In his twitter account, the Minister quoted LIC Chairman V K Sharma as saying, "We will do our best to see that, IL&FS does not collapse....doesn’t create a contagion effect ...an action plan will be clear on Friday."
"How long will LIC and performing public sector units take over the risks of non-performing corporates?" asked Isaac.
He also wondered what Sidbi doing in IL&FS, given that its mandate is to service small enterprises. Instead it has been dabbling in other areas.
IL&FS owes nearly Rs 10 billion to Sidbi. The institution wants to recover Rs 4.5 billion from IL&FS and about Rs 5 billion from its subsidiary IL&FS Financial Services. IL&FS moved the NCLT on Monday, “seeking certain relief” in connection with the filing of scheme of arrangement. The scheme will be subject to approval from shareholders, creditors, and the board of directors of the relevant entities, the company said in a filing with the BSE on Tuesday.
IL&FS and its 40 subsidiaries have filed a petition before the National Company Law Tribunal (NCLT), Mumbai, under Section 230 of the Companies Act, 2013, seeking to restructure their debts. This will delay debt repayments to its lenders.
The company has a consolidated debt of Rs 910 billion. It has missed loan repayments to a host of banks in the past one month.
 "Thomas Isaac, Kerala Finance Minister")
