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NCLAT asks IL&FS to hurry up with resolution process

  • The Supreme Court asked IL&FS to inform it of the steps taken regarding the 82 bankrupt subsidiaries in the group
  • According to reports, the corporate affairs ministry has proposed to the NCLT that four new auditing firms should restate the accounts of IL&FS and some of its subsidiaries

Mumbai: On Thursday, the National Company Law Appellate Tribunal (NCLAT) urged the debt-laden Infrastructure Leasing and Financial Services Ltd (IL&FS) to speed up the sale of its assets with the consent of its financial creditors.

"Before the next date of hearing, the Union of India must pass final order and settle the claims of all creditors with regard to Moradabad Bareilly Expressway, Jharkhand Road Projects Implementation Company, and West Gujarat Expressway as per signed term sheet. The Union of India should also give notice to financial creditors of the rest of the 10 amber (partially solvent) entities by taking their consent in the manner followed in the first three cases."

The court also asked the company to inform it of the steps taken regarding the 82 bankrupt subsidiaries in the group.

PTI reported that the corporate affairs ministry proposed to the NCLT that four new auditing firms should restate the accounts of IL&FS and some of its subsidiaries to verify fraudulent transactions. The move comes even as the ministry awaits the NCLT view on banning Deloitte, Haskins & Sells and BSR Associates, which were the statutory auditors of these companies. According to the report, the new auditors likely to be appointed include Borkar & Mazumdar & Co and MM Chitale & Co for IL&FS and IFIN, respectively, and GM Kapadia & Co and CNK & Associates for IL&FS Transportation Networks.

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