The National Financial Regulatory Authority (NFRA) has initiated disciplinary action against Deloitte Haskins & Sells (DHS) for alleged lapses in its audits of IL&FS Financial Services (IFIN). "The first step would be to issue a show-cause notice to the audit company, before any action is taken ... It is in the works," a senior government official told Business Standard. The regulatory body had said in an audit quality review report that quality control systems and processes at DHS were "severely inadequate and ineffective".
Edelweiss-backed Sekura Roads has been declared highest bidder for two IL&FS road projects for a combined bid value of 1 ,428 crore which would entail a haircut of 22 % to the lenders. Both the projects, Jharkhand Infrastructure Implementation Company (for bid value of Rs 512 crore) and Jorabat Shillong Expressway (for bid value of Rs 916 crore), have a total debt of Rs 1 ,834 crore. Italy headquartered Autostrade has also won the bid for the Pune Sholapur Road at a bid value of Rs 1,404 crore, a haircut of 27% to the lenders. The project has total debt of Rs 1,925 crore. The committee of creditors will vote on these HI bids in the coming week.
Resolution for IL&FS's five road assets hangs in the balance as bid validity for these projects is set to expire by month-end. In a last-ditch effort to finalise the sale of these assets, the group will now seek lenders' approval through e-voting.
IL&FS proposes InvIT for Road Assets. Proposal submitted to SEBI; Group wants to compensate lenders by offering units at zero cost. IL&FS has proposed the creation of InvIT to house the Group's Road Assets and compensate lenders by offering units at Zero cost.
Singapore-based infrastructure investment platform Cube Highways has won the bid to acquire India's longest road tunnel- the 9.2-km Chenani- Nashri project in Jammu & Kashmir-for Rs 3,929crore, multiple people aware of the matter said. The IL&FS board has declared Cube as the highest bidder (Hi), and invited lenders to vote for the sale through the e-voting process. The tunnel proj ect has a debt of around Rs ,454 crore and a sale of the asset will help bring down the overall debt position of the company.
THE DEPARTMENT of Economic Affairs (DEA) raised "red signals" about the possible collapse of Infrastructure Leasing & Financial Services (IL&FS) in September 2018 and the impact it would have on the economy, the Ministry of Corporate Affairs (MCA) has said. Days later, on October 1 that year, the government moved the National Company Law Tribunal (NCLT), seeking to supercede the IL&FS board and appoint a new board in its place. The government's plan was approved by the NCLT on October 2.
Sale of Schoolnet India, the education arm of IL&FS, has hit a roadblock after its shareholder Lexington Equity Holdings said it is unwilling to sell its stake in the company to the highest bidder
The government has approached the NCLAT seeking an additional 270 days to complete the resolution process of 105 IL&FS group companies. The ministry of corporate affairs (MCA) has also requested the appellate tribunal to release 55 other entities from moratorium, so that they can discharge their debt obligations.
SIXTEEN MONTHS after the new board took charge of Infrastructure Leasing & Financial Services (IL&FS) Group and having spent nearly Rs 100 crore in fees, the new board under the chairmanship of Uday Kotak has not been able to get the resolution plan approved. This has led to delay in the overall resolution of IL&FS debt. Since the new board took over in September 2018, IL&FS has only been able to complete the sale of its wind energy assets, thereby leading to a debt resolution of Rs 4,300 crore out of the total debt outstanding of around Rs 94,000 crore.
Crisis-hit IL&FS Group has received approvals from various government authorities for claims worth about Rs 2,700 crore towards stuck or incomplete road projects, officials said. The NHAI Conciliation Committee recently approved a claim for approximately Rs 707 crore for the ILFS-Fagne Songadh Expressway Limited project (in Gujarat-Maharashtra border area), while the committee had earlier approved claims of Rs 902 crore for the Khed Sinnar Expressway project (in Maharashtra). Other projects for which claims have been approved include Kiratpur Ner Chowk Expressway Limited for Rs 672 crore (in Himachal Pradesh) and Jorbat Shillong Expressway Limited for Rs 252 crore (Meghalaya). Additionally, the Ministry of Road, Transport and Highways had cleared claims of ITNL Road Infrastructure Development Company (IRIDCL) for Rs 144 crore.