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IL&FS case: Government mulling options including crisis hit firm’s sale, says Corporate Affairs Secretary

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GN Bajpai resigns from IL&FS boardIL&FS board-led by Uday Kotak had earlier said that various irregularities were found in the business transactions of the crisis-hit group. (Reuters)

IL&FS case: After exploring multiple options, the government is considering a sale of IL&FS as a way out for crisis-hit infrastructure lender, Corporate Affairs Secretary Injeti Srinivas said on Monday. The NBFC sector is not facing any liquidity stress and a crisis situation doesn’t exist in NBFC sector in short-term, he said. A combination of asset, business unit sale could be the way out for IL&FS, CNBC TV18 reported  However, there are serious issues and the likelihood of such an outcome is limited, PTI reported him saying.

“There are alternative approaches of looking at separate verticals, and verticals going as one consolidated entity. And the last approach is that you have an asset level sale,” PTI reported him saying. He also said that the government is taking steps to address immediate concerns of NBFC sector. “Whatever is in the best interest of the stakeholders, including public interest, will be the factor which will guide a resolution,” PTI reported citing him.

Also read: Share market LIVE updates: Sensex, Nifty trade on tepid note as energy, NBFC shares slip; Indian Oil falls 4%

Meanwhile, a few days back, IL&FS board-led by Uday Kotak had said that various irregularities were found in the business transactions of the crisis-hit group and its subsidiaries, The Indian Express had reported.

The government-appointed board, which submitted a blueprint of its revival plan for the group before the National Company Law Tribunal (NCLT) on Wednesday, also found that large part of the group operated as a single enterprise with “no boundaries of legal entities and separate management”, which ultimately led to the contagion impact on its creditors.

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