Il&fs Case

Indian Overseas Bank issues show cause notice to IL&FS Engineering

IL&FS Engineering Services on Monday said it has received a show cause notice from Indian Overseas Bank (IOB) for reviewing the classification of the company's loan account as a suspicious fraud account. Facilities involved for Rs 123 crore, though irregularities have not been quantified by the lender, IL&FS Engineering said in a regulatory filing. This was first observed by Grant Thornton India in their forensic audit report and was duly reported to MCA for appropriate action, it said. As per the directions of NCLT on October 1, 2018, the reconstituted Audit Committee of new Board comprising nominated directors of Ministry of Corporate Affairs had conducted a special audit (held as Forensic Audit') for all high-value transactions undertaken by IL&FS Ltd (IL&FS) and a few of its group companies which included IL&FS Engineering through Grant Thornton India LLP, it said. Accordingly, as a natural corollary of the IL&FS crisis, the then loan accounts, maintained ..

IL&FS Group initiates Rs 5,000 crore interim payout to eligible creditors

The IL&FS Group on Monday said the company has initiated Rs 5,000 crore interim payout to eligible creditors as part of its ongoing resolution mandate. Post this payout, the company said that the aggregate debt discharged will stand at approximately Rs 43,000 crore, which is over 70 per cent of the estimated total debt resolution target pegged at Rs 61,000 crore. "IL&FS Group companies have initiated an interim distribution of Rs 5,000 crore Rs 3,500 crore of Infrastructure Investment Trust (InvIT) units and Rs 1,500 crore in cash to eligible creditors as part of the Group's ongoing resolution efforts," the statement said. The interim distribution is largely being initiated by three holding companies -- Infrastructure Leasing and Financial Services (IL&FS), IL&FS Financial Services (IFIN), and IL&FS Transportation Networks (ITNL) -- that collectively hold the majority of the Group's debt and nests large creditors and public funds. Some of the Banks and ...

IL&FS, Spanish subsidiary booked for funds fraud in Ethiopian road contract

The CBI has registered a fresh FIR against IL&FS Transportation Network Ltd and its step-down subsidiary Spain-based Elsamex SA for allegedly misappropriating credit facilities to the tune of Rs 239 crore by cheating and diverting funds, officials said on Monday. India Exim Bank had sanctioned a credit limit of Euro 35 million to Elsamex which is also a wholly owned subsidiary of Singapore-based ITNL International Pte Ltd in 2015 for securing and executing overseas contracts. IL&FS Transportation is already facing a CBI probe for causing a loss of over Rs 6,524 crore to a Canara Bank-led consortium. In 2016, a consortium of Elsamex and ITNL won the bid for an Ethiopian project to design, manage and maintain the work of the Nekemte Bure Road upgrading project under an output and performance-based road contract. The project needed disbursal of certain mobilisation advances, which were to be secured by guarantees sanctioned by Exim Bank. So, Euro 32.60 million was allocated under

CBI raids in 3 cities against IL-FS Energy Development Company Limited

The CBI conducted searches in three cities after registering an FIR against IL&FS Energy Development Company Limited in connection with an alleged fraud of Rs 100.30 crore in Punjab National Bank, officials said on Friday. The Central Bureau of Investigation (CBI) has booked the company and its directors for alleged criminal conspiracy, cheating and under provisions of the Prevention of Corruption Act for diversion of funds and other irregularities in the utilisation of loans availed from the bank. "The CBI has conducted searches at office and residential premises of accused including the private company at New Delhi, Dehradun (Uttarakhand) and Mumbai (Maharashtra), etc. which led to recovery of incriminating documents/articles etc.," a CBI spokesperson said. It was alleged that the accused entered into a conspiracy to cheat Punjab National Bank (erstwhile e-United Bank of India), he said. "In pursuance of the said conspiracy, the accused misappropriated the sanctioned credit ...

CBI files case against IL&FS Transportation Network for defrauding 19 banks

The fraud done by IL&FS Transportation Network Ltd (ITNL) and its directors came to light in 2018 after the National Company Law Tribunal (NCLT) appointed a new board of directors

IL&FS money laundering case: ED issues fresh summons to NCP's Jayant Patil

The Enforcement Directorate (ED) has issued fresh summons to Maharashtra NCP president and MLA Jayant Patil for questioning in a money laundering case linked to alleged financial irregularities in the now bankrupt financial services firm IL&FS, official sources said Monday The 61-year-old MLA from Islampur seat of Maharashtra was issued the first summons for appearance on May 12 but he had sought deferment for about 10 days citing some personal and official engagements. The politician has now been asked to appear on May 22, the sources said. Patil, a former minister of home and finance, is also the state president of the Nationalist Congress Party (NCP) and is a seven-term legislator. He had told reporters last week that he never had any association or financial dealing with IL&FS. Alleged payment of some "commission amount" by some accused companies to entities linked to Patil are under the scanner of the agency and it is understood he will be questioned about these ...

ED searches Deloitte, BSR offices in IL&FS money laundering probe

According to ED, statutory audit of IFIN has been made by Deloitte Haskins & Sells LLP between FY09 and FY18 and by BSR & Associates for FY18

Khaitans reach settlement with IL&FS to regain control of McLeod Russel

Once NCLT approves application, tea producer would be out of insolvency proceedings

Dilemma over bank licences: NBFCs struggle to make the cut for RBI's rules

The RBI has also tightened guidelines, narrowing the regulatory arbitrage that existed between NBFCs and banks

GAIL completes acquisition of bankrupt IL&FS' 26% stake in OTPC

State-owned gas utility GAIL (India) Ltd on Tuesday said it has completed the acquisition of bankrupt Infrastructure Leasing and Financial Services' (IL&FS) 26 per cent stake in ONGC Tripura Power Company (OTPC). OTPC is a special purpose vehicle set up by Oil and Natural Gas Corporation (ONGC) to build a 726.6 megawatt combined cycle gas turbine (CCGT) thermal power plant at Palatana, Tripura. The IL&FS group and the Government of Tripura (GoT) were partners in the special purpose vehicle (SPV). ONGC holds 50 per cent interest in the company in the project that supplies electricity to the northeastern states. Tripura government holds 0.5 per cent while India Infrastructure Fund II holds the balance 23.5 per cent stake. "GAIL and IL&FS Group successfully concluded the transaction wherein GAIL acquired an equity stake of 26 per cent held by IL&FS Energy Development Company Ltd (IEDCL) and IL&FS Financial Services Ltd (IFIN) in ONGC Tripura Power Company Limited ...

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Parliamentary panel, Sebi likely to discuss action in key cases

Franklin Templeton fiasco, brokers' default, outcomes of IL&FS & DHFL may be taken up during today's meet

Debt-laden IL&FS plans to sell stake in Shendra Green Energy

IL&FS said that the eligible applicants have to submit the RFP by 6 pm, August 30, 2021

IL&FS case complexities reveal what India's resolution mechanism is lacking

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

IL&FS addresses debt of Rs 43,000 cr; raises recovery estimate to Rs 61K cr

Infrastructure Leasing and Financial Services (IL&FS) on Thursday said it has addressed aggregate group debt of Rs 43,000 crore so far and expects to cross Rs 51,000 crore by September 2021.

IL&FS sells environment arm to Eversource; pares total debt by Rs 1,200 cr

Transfers 4,000 employees, including consultants, to new promoter; saves Rs 50 cr a year in the process

ISPL repays debt amounting to nearly Rs 845 cr after EEPL clears dues

The repayments by IL&FS Solar also cover tax and statutory dues

IL&FS case: Sebi raises penalty to Rs 1 crore each on ICRA, CARE

Markets regulator Sebi on Tuesday enhanced the penalty amount to Rs 1 crore each on rating agencies ICRA and CARE in connection with lapses on their parts while assigning credit rating to non-convertible debentures of IL&FS. The crisis at diversified IL&FS, whose board was superseded by the government, came to light in September 2018 and since then, the company as well as related entities have come under the regulatory lens. The regulator, in December 2019, had imposed a fine of Rs 25 lakh each ICRA and CARE Ratings in the matter saying the default by IL&FS occurred due to "lethargic indifference and needless procrastination and laxity" of these rating agencies. While the regulator came down heavily on the rating agencies with sharp observations but it was felt that the same was not reflected in penalty, several experts said. Sebi examined the order passed by Adjudicating Officer (AO) and observed that the penalty levied by AO appeared to be erroneous and not commensurate

NFRA bars another auditor for 5-years, slaps Rs 15 lakh fine in IL&FS case

Baid is at least the third auditor against whom action has been taken by NFRA in the IFIN matter

IL&FS Board looks to resolve 57% of total debt of Rs 99,000 cr

While the group's debt resolution amount has been revised upwards, the timeline has seen a delay partly due to Covid-19, with an Italian bidder backing out of a road asset sale deal