Tax ghost of Rs 6,390 crore returns to trouble listing-ready IRFC

Railways has sought waiver from MCA, saying it may improve valuation of the company

With the Department of Investment and Public Asset Management (Dipam) pushing for an immediate listing of Indian Railway Finance Corporation (IRFC), the demand by the company for waiver of its deferred tax liability (DTL) of Rs 6,389.91 crore has resurfaced. 

Indian Railways has sought the waiver from the Ministry of Corporate Affairs (MCA), saying it may improve the valuation of the company, as it will “help shore up the net worth, reducing the dependence on equity infusion from the railways ministry to maintain the financial gearing within tolerable limits.” On April 2, corporate affairs ministry came out with a notification