Page 13 - Il&fs

RBI's stand on IL&FS exposure spells trouble for banks, NBFCs

Firms that provided for exposure on a voluntary basis may now have to mark the same as NPAs

SFIO arrests former IL&FS Fin Services CEO Ramesh Bawa for abusing powers

Making its second arrest in the IL&FS case, the Serious Fraud Investigation Office (SFIO) Saturday arrested former IL&FS Financial Services chief Ramesh C Bawa, official sources said. They said Bawa, who had served as managing director and CEO, was arrested on the grounds of abusing his powers at the company through fraudulent conduct. He also granted loans to entities which were not creditworthy and caused wrongful loss to the company and its creditors, they added. Earlier this month, the probe agency arrested former IL&FS vice chairman Hari Sankaran. The sources said IL&FS Financial Services Ltd had borrowings of around Rs 17,500 crore through debt instruments and bank loans. Provident funds, pension funds, gratuity funds, mutual funds as well as public and private sector banks are among the entities that have invested in these debt instruments. The alleged financial irregularities at IL&FS came to light last year after some group entities defaulted on debt ...

Whistle-blower letter: Deloitte faces SFIO probe in IL&FS case

The whistle-blower has sent the letter to other regulatory bodies like the Reserve Bank of India, Securities and Exchange Board of India (Sebi), and Ministry of Corporate Affairs

Provident, pension funds have Rs 9,134-cr exposure to IL&FS group companies

Beleaguered financial institution provides assets, liabilities details of four amber entities to NCLAT

Manager who bet on India mini-Lehman moment likes non-bank debt

DSP's company bond fund was the top performer among 17 rupee corporate note funds in the last six months, according to data compiled by Bloomberg

IL&FS crisis raises questions about rating agencies: Injeti Srinivas

India Ratings & Research, ICRA, and Credit Analysis and Research Ltd gave IL&FS the highest rating of AAA, says Corporate Affairs Secretary.

IL&FS financial arm's GNPAs touch 90% in Dec against 5% in Mar 2018: Board

Board optimistic about asset sale, will have clarity on monetisation by May

First arrest in IL&FS case, former vice chairman Sankaran in SFIO custody

Hari Sankaran, a former vice chairman of IL&FS, was arrested in Mumbai on Monday for fraud and causing wrongful loss to the troubled infrastructure lender, official sources said.

NCLAT asks IL&FS to give details of debt-ridden group's dues

The National Company Law Appellate Tribunal (NCLAT) Friday asked the newly-appointed board of debt-ridden IL&FS to submit details of the group's dues. A two-member bench headed by Chairman Justice S J Mukhopadhaya also clarified that there was no stay on the government to proceed with the resolution plan for IL&FS companies. During the proceedings, the bench said that whatsoever step is taken by the newly-appointed board and the government for resolution of IL&FS and its over 300 group companies would have to be passed by the appellate tribunal. The NCLAT has listed the matter for next hearing on April 8. The bench also said it would hear the banking regulator RBI on moratorium against IL&FS group companies at the next hearing. During the proceedings, senior secured financial creditors of IL&FS asked the tribunal to direct the 'amber' classified companies to discharge their debt liability. Under its resolution plan, the government has categorised IL&FS group ...

IL&FS crisis highlights need to tighten regulation of credit rating firms

In the US, S&P and Moody's had to pay $1.37 billion and $864 million, respectively, as settlements with federal and state authorities in January 2017

IL&FS' systemic structural flaw

Its status as a Systemically Important Core Investment Company created an opaque, hydra-headed organisation

Don't make it a prestige issue, NCLAT tells RBI over IL&FS NPA rule

RBI had approached NCLAT seeking to implead itself as a party in the ongoing IL&FS case

RBI moves NCLAT over order on classification of IL&FS cos' debt as NPA

The RBI is seeking modification of the order passed by the tribunal which has provided moratorium on repayment of loans regarding the accounts of IL&FS and its over 300 group cos

Reflection on governance issues in IL&FS and L&T

A solution to motivational issues is yet to be found out. Therefore, the use of the stick is the only solution

The IL&FS mess

Audit report shows collapse of governance norms

IL&FS board charges former directors of money laundering, criminal intent

Tasked with cleaning up of mammoth financial mess at embattled IL&FS, its government-appointed board has charged 14 former directors of group firm IL&FS Financial Services Ltd (IFIN) of facilitating money laundering, sanctioning loans in violation of rules and causing "huge financial stress and losses" to the company. In show-cause notices issued to the 14 former directors, the new management has charged them of having "sanctioned loans deceptively to external and group companies with sole objective to infringe RBI guidelines of excessive exposure of IFIN to intra-group companies." They have also been accused of extending loans for "criminal intent of falsification of repayment by a number of borrowers, including some entities associated with large corporate groups. The notices, dated February 27, have asked former directors to reply within seven days upon receipt as to why departmental and legal actions should not be taken against them for their "misconduct, dereliction of ...

Grant Thornton's IL&FS audit finds irregularities in deals worth Rs 13K cr

Grant Thornton in its report on debt ridden IL&FS Group has identified various financial irregularities in deals with financial implications of over Rs 13,000 crore during special audit conducted by the firm. IL&FS Group, which operates at least 24 direct subsidiaries, 135 indirect subsidiaries, six joint ventures and four associate companies, is sitting on debt of Rs 94,000 crore. The report has identified 29 instances where it appears that the loans disbursed to borrowers were in turn utilised by their group companies to repay the existing debt obligations with IL&FS Financial Services Limited (IFIN). These together has a financial implications of Rs 2,502 crore, said the draft report prepared for all high-value transactions undertaken by IL&FS Limited and few of its group companies for the period commencing from April 1, 2013 to September 30, 2018. The report said there are 18 instances where the Commercial Operations Date (COD) ultimately approved loans to those ...

Poor prescription

NCLAT ruling on IL&FS undermines RBI's role

IL&FS lenders to continue making provisions for loans to the group

Only the current earning flows should be used to make provisions and future cash flows should not be loaded with the obligation to make provisions.

50% IL&FS assets on block, 22 group firms servicing loans: Injeti Srinivas

Corporate affairs secretary justifies NCLAT ruling on non-classification group accounts as NPA, saying it is a one-off order, keeping in mind national interest