New Delhi [India], Oct 1 : The National Company Law Tribunal (NCLT) on Monday granted permission to the government for superseding debtridden InfrastructureLeasing & Financial Services Limited’s (IL&FS) Board.
Furthermore, the NCLT appointed a six-member panel, to be headed by Kotak Mahindra Bank Managing Director, Uday Kotak, to take over the management with immediate effect.
The panel is expected to meet in the coming week to elect a chairman of the board. The next hearing will be held on October 31.
Recent defaults in interest payments since August 27 have raised concerns over IL&FS’ financial stability. The firm has defaulted on debt payments as many as seven times between September 12 and 27. IF&LS has over Rs 91,000 crore in debt. State Bank of India (SBI) and Life Insurance Company (LIC) are both stakeholders at the firm.
While LIC owns 25.34 per cent stake, SBI holds 6.42 per cent stake. Earlier on Monday, the Sensex witnessed a fall of more than 2,500 points due to the IL&FS crisis, which later escalated the drop on equity mutual funds.
The market analysts attributed the fall in the equity market to IL&FS-led liquiditycrisis fears, rupee volatility and rising crude oil prices.
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