IL&FS Scam: NCLAT Defers Hearing to 20th December in Moratorium Matter
The National Company Law Appellate Tribunal (NCLAT) on Monday deferred to 20 December 2018 its hearing in the Infrastructure Leasing and Financial Services (IL&FS) moratorium case.
 
According to BTVI, the hearing could not take place today due to absence of NCLAT chairperson.
 
 
In November this year, 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 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 had fixed 17th December as the 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 (MCA) 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 had suspended the board of IL&FS on the government's plea and authorised reconstitution of the board by appointing seven directors two days later.
Like this story? Get our top stories by email.

User

IL&FS Fire Sale is on for a Fleet of 36 Luxury Cars, Furniture and White Goods
Debt-laden Infrastructure Leasing & Financial Services (IL&FS) has initiated the process to sell its fleet of 36 luxury cars and has invited bids from prospective buyers. Last date for submission for the bids is 18 December 2018 . In addition, the debt-ridden group is also selling guest-house assets including furniture and white goods from one flat in Kolkata and two flats located in Mumbai.
 
Luxury cars put on the block by IL&FS include eight Audis, six BMWs, three Honda, two jaguar, one Land rover and Lexus each, four Mercedes Benz, one Skoda Superb, six Toyotas and four Volvos. The most recently bought car in the lot is a BMW X1 registered in the name of IL&FS Rail Ltd in May 2018 and has a base price of Rs30.09 lakh.
 
Car from the lot with lowest base price is July 2004 registered Honda CRV from IL&FS Financial Services Ltd at Rs2.59 lakh. Mercedes Benz GLS 350D 4Matic bought by the same company in May 2017 carries the highest base price tag of Rs54.02 lakh.
 
Here are the details of the cars and their base prices...
 
 
IL&FS is also selling guest-house equipment including furniture and white goods from a flat in Kolkata’s New Town area. The list of furniture and white goods including LCD TV, leather sofa, dining table and chairs, treadmill, washing machine, desktop and executive chair.
 
 
IL&FS has also invited bids for selling guest house assets from two flats located in Mumbai. This includes treadmill, oven, LED tvs, dining table and chairs, air conditioners, ward robe, sofa sets, refrigerator, safe, washing machine among others.
 
 
 
 
Like this story? Get our top stories by email.

User

COMMENTS

kashyap joshipura

3 months ago

It is good story on IL&FS.It reflects the unwanted expenditure by the company .Indian citizens can also judge the reasons for the present situation of the company

Nagaraju Bommanahalli

3 months ago

In few years most of the companies will follow [email protected], because all companies doing fraud business and fraud money is pumped out of India,in few years all PSU banks become bankruptcy and India become bankruptcy.all banks gave huge loans to big companies with out proper security.our chowkidar doing drama in front of common people

Nagesh C

3 months ago

its not enough to pay even ieccl pending salaries

tanay

3 months ago

Lol it needs to sell how many cars and sofas to pay 90k crore of debt

IL&FS Scam: SEBI Starts Adjudication against Credit Rating Agencies
Market regulator Securities Exchange Board of India (SEBI) said it has started adjudication against credit rating agencies (CRA) in the Infrastructure Leasing & Financial Services (IL&FS) scam. The rating agencies have been accused of not reporting the deteriorating financials of IL&FS. 
 
As per the interim report of the serious fraud investigation office (SFIO), the modus operandi of IL&FS group from 2015 to 2018, was to keep the holding company and its immediate subsidiaries financially viable and healthy, through an unsustainable, pyramidal funding, routing short-term funds borrowed at the holding company or the subsidiary company level to its various step-down or project subsidiaries, as the holding companies' contribution or to avoid default on these companies' borrowing.
 
The report says, "Defaults in the group companies were avoided for the period by routing funds borrowed by key companies, which projected a financially healthy picture, thus creating an unsustainable bubble in the absence of sufficient revenue generation internally by the IL&FS group."
 
According to SFIO, this was done to project key subsidiaries of IL&FS as financially sound through the interest charges, dividend and fee-based returns as well as through ever-greening of loan. This allowed IL&FS and its key subsidiaries to enjoy regular dividends, interest payments and high credit ratings.
 
During September 2018, rating agencies ICRA, CARE and India Ratings downgraded the bonds, long-term loans and short-term commercial papers of Infrastructure Leasing & Financial Services (IL&FS) and its subsidiaries. It is interesting to note that IL&FS did not seek ratings from CRISIL.
 
The credit ratings of IL&FS’ bond papers went down by nine notches to ‘BB’ grade, which is considered non-investment grade, from ‘AA+’ which indicates a strong financial profile.
 
The ratings of commercial papers, which are debt papers that mature within a year, went down by six notches to A4 from A1+, another instance of sharp change in the financial profile from strong to very weak.
 
Several mutual fund (MF) schemes hold the debt papers of IL&FS, and its subsidiaries, in large numbers. The total amount of currently outstanding debt papers held by MF schemes was valued at around Rs2,400 crore as at end-August, before the downgrade.
 
You may also want to read...
 
 
 
Like this story? Get our top stories by email.

User

COMMENTS

Umesh Thakur

3 months ago

Any thing regarding shares

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

online financial advisory
Pathbreakers
Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
online financia advisory
The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Online Magazine
Fiercely independent and pro-consumer information on personal finance
financial magazines online
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
financial magazines in india
MAS: Complete Online Financial Advisory
(Includes Moneylife Online Magazine)