IL&FS Crisis: Govt Seeks Freezing & Attachment of Properties of Key Executives Ravi Parthasarathy, Hari Shankaran and Others
The government on Monday sought attachment of properties of a few more directors of debt-ridden Infrastructure Leasing & Financial Services (IL&FS). The counsel for the ministry sought to freeze all assets, securities, lockers, bank accounts of Ravi Parthasarathy and Hari Shankaran.
Top executives from IL&FS group who were made parties to the case include Vibhav Kapoor, Pradeep Puri, K Ramchand, S Rangarajan, RC Bawa and Mukund Sapre. The government is also seeking attachment of movable and immovable properties of these top executives of IL&FS group.
During the hearing, the National Company Law Tribunal (NCLT) agreed to make these executives as parties to the case and allowed the company application to make all of them respondents in the case.
Earlier, the ministry of corporate affairs (MCA) filed its interim report on the IL&FS case, naming several high-profile individuals and 302 group companies as respondents. The MCA, in its report mentioned that 39 companies that were listed as part of IL&FS have ceased to be group companies and Serious Fraud Investigation Office (SFIO) is probing the matter.
The counsel for the government told the Tribunal that interim probe shows manner in which fund diversion took place at IL&FS. While Kapoor was the chief investment officer of IL&FS, Ramchand was the managing director (MD) of IL&FS Transportation Network. Rangarajan was the MD and chief executive (CEO) of IL&FS Securities, Sapre was the executive director of IL&FS Transportation Networks Ltd (ITNL), while Bawa was the MD of IL&FS Financial Services. Puri, an officer from the Indian Administrative Services (IAS) was the chairman of IL&FS Water Ltd.
Last week, IL&FS initiated the process to sell its renewable energy business and has invited expression of interest (EoI) proposals from prospective buyers. IL&FS's assets from the renewable energy business put on the block include, operating wind power generating plants with aggregate capacity of 873.5MW, and its under-construction wind power generating plants with aggregate capacity of 104MW. Its asset management services for the wind power generating plant, business division that carries out project development and implementation of wind power plants will also be sold.
Last month, several lenders of IL&FS had opposed the 90-day moratorium over loans taken by the debt-laden group and its subsidiaries. Lenders also requested the National Company Law Appellate Tribunal (NCLAT) to allow them not to classify IL&FS accounts as non-performing assets (NPAs) in case of defaults.
However, there was no decision and the NCLAT fixed 17th December as next date of hearing.
During October, the NCLAT had stayed all proceedings against IL&FS group and its 348 group companies till further orders, over an urgent petition moved by the government.
Earlier, the ministry of corporate affairs had approached the appellate tribunal after the Mumbai bench of NCLT turned down its plea to grant 90-day moratorium over the loans taken by IL&FS and its subsidiaries. On 1 October 2018, the NCLT suspended the board of IL&FS on the government's plea and authorised reconstitution of the board by appointing seven directors two days later.