However, the HC says, "in the larger interest of all the stakeholders, who have an association with the IL&FS and group companies in one form or the other, the central government having already assigned investigation with SFIO, which investigating agency, as stated above, is vested with jurisdiction and wider powers of investigation to deal with an infraction under any law in addition to its exclusive jurisdiction under the Companies Act, it is well open to the intervenors to approach SFIO and submit an appropriate representation for the relief aforesaid in accordance with law..."
The bench also noted that the economic offence committed by IL&FS, and its group companies is to the whopping tune of Rs91,000 crore and above, which has a spiralling and cascading effect on the economic growth of the country, which had resulted in the central government interfering in the administration of IL&FS and its group companies by filing the petition before NCLT for reconstitution of the board, which has been discussed above.
"The various orders passed by the Tribunal at the interference of the central government clearly show that all is not well with IL&FS and its group companies and also the persons who were manning the said companies, of which the petitioners also formed a part then. Though the petitioners had come out of the post of directors, it is not to be forgotten that the action by the central government in filing petition before the NCLT and ordering of investigation by SFIO clearly show the economic imbalance, which the group companies had created in derailing the economy of the country. Finding has been rendered by NCLT that the petitioners were within the committee of directors, who were at the helm of affairs in running IL&FS and its group companies," the Madras HC says.
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