In the news
8 Jun 2020

IL&FS sells 50% stake in GIFT City to Gujarat govt, reduces consolidated debt by over Rs 1,200 crore

Debt-laden IL&FS on Monday said it has completed the sale of its 50 per cent stake in Gujarat International Finance Tec-City (GIFT City) to the Gujarat government, generating over Rs 32 crore for its equity value and also reducing its consolidated debt by more than Rs 1,200 crore. The stake in GIFT City was bought by Gujarat Urban Development Company Ltd (GUDCL), on behalf of the Gujarat government.

Press release
8 Jun 2020

IL&FS GROUP COMPLETES STAKE SALE IN GIFT CITY, REDUCES CONSOLIDATED DEBT BY OVER INR 1,230 CRORE (1)

IL&FS Limited has completed the sale of its 50% stake in Gujarat International Finance Tec-City Company Limited (GIFTCL) to the Government of Gujarat (GOG) represented by Governor of State of Gujarat / Gujarat Urban Development Company Limited (GUDCL). The sale was completed pursuant to the approval granted by the Hon. National Company Law Tribunal (NCLT), Principal Bench vide order dated May 22, 2020.

In the news
6 Jun 2020

IL&FS Transportation incurs Rs 17K-cr standalone loss in FY20

IL&FS TRANSPORTATION NETWORKS, a group company of the troubled IL&FS Group, on Friday reported a standalone loss of Rs 17,000.32 crore for fiscal year 2019-20, amid Covid-19 disruptions. The company had clocked a standalone profit of Rs 251.76 crore during the fiscal 2018-19, it said in a regulatory filing.

In the news
5 Jun 2020

Deloitte helped ITNL avoid disclosure of contingent liability : GT report

The Forensic Report by Grant Thornton India on the books of accounts of lL&FS Transportation Networks India Limited (ITNL) reveals that its auditor — Deloitte Haskins and Sells — assisted the company to tweak the language of the Letter of Assurances (LOAs) issued by the company in a bid to avoid disclosure of contingent liability in its financial statements and then failed to flag the same in its audit reports. ITNL is a group company of financial firm IL&FS. The issue relates to LOA/Letter of Comfort (LOC) issued by ITNL in order to help borrowing at the special purpose vehicle (SPV) level for projects facing cost over¬runs or that required bridge funding. The Grant Thornton report, seen by The Indian Express, shows that there are at least 19 instances where ITNL issued LOA/LOC for loans sanctioned by group company IL&FS Financial Services (in 16 instances) and other financiers (3 instances) — aggregating to over Rs 2,700 crore — to various external parties who were also vendors of ITNL.

In the news
4 Jun 2020

IL&FS rejigs team to boost asset sale

IL&FS Group has undertaken a top fleck reshuffle after its chief operating officer N Sivaraman, who was leading the asset-monetlsation programme for the beleaguered group, put in his papers. Three executives will now lead the asset monetisation and InvIT (Infrastructure Investment Trusts) programme as the group, which saw the government take charge a little under two years ago, races against time to sell assets to realise as much value as possible. At last count, the government was hoping to raise around Rs 55,000 crore to repay a debt of nearly Rs 94,000 crore. While the estimate was pre-lockdown, some of the assets may now see more muted Interest, given that a few of the bidders themselves are facing financial distress.

In the news
4 Jun 2020

APPOINTMENT : Uday Kotak is new CII president

VETERAN banker Uday Kotak, managing director and CEO of Kotak Mahindra Bank Limited has assumed office as the president of the Confederation of Indian Industry (CII) for 2020-21, the chamber said Wednesday. Kotak takes over from Vikram Kirloskar, chairman and managing director of Kirloskar Systems Ltd and vice chairman of Toyota Kirloskar Motor.

In the news
3 Jun 2020

To Avoid Ratings Cut, ITNL did Not List Rs 2.5kcr Loans as Contingency Liabilities

An audit report has revealed that IL&FS Transportation Networks India did not disclose as 'contingent liabilities' loans amounting to Rs 2,570.50 crore sanctioned by sister concern IL&FS Financial Services — despite providing assurance letters — to avoid rating downgrade. These loans Issued to third parties, who were also vendors to ITNL, didn't follow required standard operating procedures (SOPs), or any formal policy or protocol regarding approval from the board of directors or committee of disputes (COD)—Increasing the risk exposure of the company, it said. ET has seen a copy of the Grant Thornton India report.

In the news
2 Jun 2020

IL&FS used every trick in the book to mislead regulators, round-trip loans: Forensic audit

The previous management of debt-laden Infrastructure Leasing and Financial Services (IL&FS) surreptitiously attempted to hide the dire financial condition of the company, conceal cash flow stress and mislead regulators into adopting a restructuring plan, according to a forensic report reviewed by Moneycontrol. The audit findings by consultancy Grant Thornton (GT) reveal that the management knew about the financial challenges that the group was facing since 2016 and it had also discussed with the Reserve Bank of India (RBI) to make necessary regulatory amendments to facilitate fundraising at the holding company level.

In the news
28 May 2020

NCLT approves sale of IL&FS stake in Gift city

THE National Company Law Tribunal (NCLT) on Wednesday approved the stake sale of IL&FS in Gujarat International Finance Tech-City Company Limited (GIFT City) to the Government of Gujarat for Rs 32.7 crore. The Gujarat International was set up as an equal joint venture between the state government, via Gujarat Urban Development Company Ltd (GURDCL) and IL&FS to develop an integrated township and financial services hub. Last year, the Gujarat government had applied for buying the 50 per cent stake in the joint venture.

In the news
28 May 2020

IL&FS gets NCLT nod to sell stake in GIFT City to Gujarat government

Debt-laden IL&FS will sell its entire stake in Gujarat International Finance Tec-City Limited (GIFTCL) to the Gujarat government. IL&FS has a 50 per cent stake in GIFTCL, which comprises a multi-services Special Economic Zone (SEZ) and International Finance Services Centre (IFSC) totaling approximately 6 lakh square feet.

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