THE GOVERNMENT has allowed Uday Kotak, MD and CEO of Kotak Mahindra Bank, to continue on the board of troubled infra lender IL&FS for one more year till October 2, 2021. This is the second extension for Kotak to continue on the IL&FS board.
AS the IL&FS issues are still pending to be resolved, the Centre on Wednesday has extended the tenure of Uday Kotak as Chairman of IL&FS for one more year, till October 2, 2021. In the year 2018, the Centre had dissolved the fraud-hit IL&FS crisis and had restructured board of the company with Uday Kotak as the chairman of the company.
The government on Wednesday extended the term of Uday Kotak as non-executive chairman of debt-ridden IL&FS group by one year. The government through a gazatte notification extended term of Kotak, who is managing director and chief executive officer of Kotak Mahindra Bank, till October 2, 2021.
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 The crisis at diversified IL&FS, the board of which was superseded by the government, came to light in September 2018 and since then, the company, as well as related entities, has come under regulatory lens.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.