Markets regulator Securities and Exchange Board of India (Sebi) on Tuesday enhanced the penalty amount to Rs 1 crore each on ICRA and CARE Ratings in connection with lapses on their part while assigning credit rating to non-convertible debentures of IL&FS. The crisis at diversified IL&FS, the board of which was superseded by the government, came to light in September 2018 and since then, the company, as well as related entities, has come under regulatory lens. The regulator, in December 2019, had imposed a fine of Rs 25 lakh each ICRA and CARE in the matter, saying the default by IL&FS occurred because of the "lethargic indifference and needless procrastination and laxity" of these rating agencies.
Ahmedabad Municipal Corporation's (AMC) health department sealed two sites, imposed fine of Rs 2.60 lakh and issued 18 notices to different construction agencies, including Metro Rail project, IL&FS, L&T Construction Limited and Tata Project Limited, for failing to take steps to control mosquito breeding.
The capital market regulator has given its nod to IL&FS to set up an infrastructure investment trust (InvIT) that would take over at least 10 road projects of the troubled infrastructure financier and help it resolve debt of nearly Rs13,000 crore. Units of the proposed InvIT will be distributed among key lenders including State Bank of India, Punjab National Bank, Canara Bank, Bank of India and Indian Overseas Bank, people familiar with the development said. The group is expected to start the process of setting up a sponsor company for the InvIT under its subsidiary IL&FS Transportation Networks by the end of this month.
THE IL&FS Group on Wednesday completed the sale of a 73.69% stake in its education business, held under Schoolnet India (SIL), to Falafal Technologies (FTPL), reports fe Bureau in Mumbai. The transaction provides a positive equity value to IL&FS and resolves nearly Rs 650 crore of consolidated fund-based and non-fund based financial debt, without any haircut to lenders, the company said.
The IL&FS Group today completed sale of its 73.69 per cent stake in Education business, held under Schoolnet India Limited (SIL), to Falafal Technologies Private Limited (FTPL). The sale was completed pursuant to the approval granted by the Hon. National Company Law Tribunal (NCLT), Principal Bench vide order dated August 31, 2020.
The IL&FS Group on Wednesday announced that it sold 73.69 per cent stake in Education business, held under Schoolnet India Limited (SIL NSE 2.60 %), to Falafal Technologies Private Limited (FTPL). The sale was completed pursuant to the approval granted by the National Company Law Tribunal. The transaction provides positive equity value to IL&FS and resolves nearly Rs 650 crore of consolidated fund based and non-fund based financial debt, without any haircut to lenders.
What are the new challenges for the board? With respect to the sale process, running multiple processes simultaneously, onerous commercial arrangements with counter parties and the weak external environment have posed challenges. Unexpected lockdown extensions in different parts of the country also impact smooth functioning with regards to external and internal functioning, approval processes and timelines. Some challenges are being faced in realising faster settlement of receivables, due to the IL&FS Group, for the work done. However, we are confident of meeting our stated aggregate debt resolution numbers in these times.
The National Company Law Tribunal (NCLT) has approved the sale of education assets of debt-ridden IL&FS to Lexington Equity Holdings Ltd (LEHL). A two-member Mumbai Bench of the NCLT approved the sale of IL&FS's 73.69 per cent stake in Schoolnet India, formerly known as IL&FS Education &Technology Services, to Falafal Technology Pvt Ltd. Falafal Technology is a step-down subsidiary of LEHL, which already owns 26.13 per cent stake in Schoolnet.
The Covid crisis could not have come at a worse time for the Infrastructure Leasing and Financial Services (IL&FS) board that is in the process of resolving debt of Rs 99,000 crore. On March 12, 2020, the Uday Kotak-led board, which will complete two years in September-end, finally received the National Company Law Appellate Tribunal's (NCLAT's) approval for the resolution and distribution framework for the IL&FS Group. The proposal, incidentally, was submitted in January 2019. However, India went into the lockdown mode just 12 days after the nod from NCLAT.
The National Investment and Infrastructure Fund (NIIF) has begun early discussions to acquire about 49.5% stake in gas-based power plant ONGC Tripura Power Company Ltd (OTPC) for about Rs 1,500 crore, said two people aware of the development. This would be the first investment by the NIIF, India's first infrastructure specific investment fund, in the conventional energy sector.