Days after Grant Thornton (GT) India LLP submitted its interim report detailing out irregularities in the embattled Infrastructure Leasing and Financial Services (IL&FS), the new government-appointed board of IL&FS has sent show cause notices to the erstwhile board of IL&FS Financial Services Ltd (IFIN) asking why criminal action shouldn’t be initiated against them.

Transactions worth more than Rs 13,000 crore at Infrastructure Leasing & Financial Services (IL&FS) could be linked to irregularities such as conflicts of interest, inadequate risk assessment and deviation from banking norms, audit firm Grant Thornton India has said in its interim report to the board of the embattled infrastructure financier.

The government-appointed board of IL&FS is planning to initiate criminal proceedings against several defaulters of IL&FS Financial Services (IFIN), charging them of colluding with the erstwhile management. This is after discovering large-scale irregularities, which includes ever-greening of loans and funds being routed to entities.

A bankruptcy appeals court ruling, which ordered Monday that no loan account of IL&FS and its units be put into the nonperforming category without its approval, would save lenders about Rs 10,000 crore in March-quarter provisioning costs, two people aware of the development said.

IL&FS Transportation Network Ltd (ITNL), part of the IL&FS Group, on Monday said it has been able to secure the safe return of its four employees, who were held hostage in Ethiopia.

IL&FS Transportation Network Limited (ITNL), a part of IL&FS Group, confirms that it has been able to secure safe return of its 4 employees, working on projects in Ethiopia, to India.

The Enforcement Directorate (ED) has registered a money laundering case in the matter concerning alleged financial irregularities in Infrastructure Leasing and Financial Services (IL&FS) Ltd.

The board of Infrastructure Leasing & Financial Services will form committees of creditors at asset levels — the special purpose vehicles (SPVs) managing its projects — to assess their outstanding payments. It is also looking to appoint a claim adviser at the group level to coordinate the activity, people familiar with the matter said.

The government and the board of directors of debt-laden Infrastructure Leasing and Financial Services (IL&FS) are looking at sale of individual group companies as they believe the direct resolution of vertical holding companies such as IL&FS Transportation Networks is “unlikely”.

The parliamentary standing committee on finance has asked the government to set up a high-level inquiry commission to identify the reasons behind the Infrastructure Leasing & Financial Services Ltd (IL&FS) default crisis.