Govt seizes control of debt-laden IL&FS; new board to meet before Oct 8

The dramatic move underscores the government's concern about IL&FS' defaults spreading to other lenders in the world's fastest-growing major economy

India's government will immediately seize control of a shadow lender whose defaults have caused widespread upheaval at mutual funds, a rebuke that's only happened to one other firm. 

Officials were granted approval to oust Infrastructure Leasing & Financial Services Ltd's board and a new six-member board will meet before October 8, the National Company Law Tribunal said on Monday. India's richest banker Uday Kotak and ICICI Bank Chairman GC Chaturvedi will be part of the proposed board, which will elect a chairperson themselves. The nation's corporate affairs ministry has sought to take control of a company on just two prior