Ousted IL&FS MD Hari Sankaran arrested for abuse of power by Serious Frauds Office: Sources
5 years, 9 months ago

Ousted IL&FS MD Hari Sankaran arrested for abuse of power by Serious Frauds Office: Sources

Hindustan Times  

Serious Fraud Investigation Office, the agency that investigates white-collar crimes, on Monday arrested Hari Sankaran, former vice chairman and the managing director of Infrastructure Leasing and Financial Services group for “abusing” his powers by granting loans to non-creditworthy entities, causing losses to the company and its creditors, government officials said. “Shri Hari Sankaran has been arrested on the grounds of abusing his powers in IL&FS Financial Services Ltd through his fraudulent conduct and in granting loans to entities which were not creditworthy or have been declared non performing assets and caused wrongful loss to the company and its creditors,” one of the officials, quoted above, said. The arrest is particularly made in the case of IL&FS’ group company, IL&FS Financial Services Ltd, which had borrowings of more than ₹17,000 crore from debt instruments and bank loans, the official said. IL&FS started defaulting in repaying its loans since August last year that made the financial markets panicky and it faced serious credit squeeze.

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History of this topic

HC grants bail to former IL&FS chairman Hari Sankaran
10 months, 1 week ago

HC grants bail to former IL&FS chairman Hari Sankaran

Hindustan Times  

MUMBAI: The Bombay high court on Thursday granted bail to former Infrastructure Leasing and Financial Services Limited chairman Hari Sankaran, who was arrested by the Serious Fraud Investigation Office for alleged irregularities at the company and its subsidiaries driving them to insolvency. The single judge bench of Justice Prithviraj K Chavan also asked Sankaran to surrender his passport and refrain …

Stocks to Watch: SBI, Coal India, Future Retail, Eicher Motors, telcos
2 years, 11 months ago

Stocks to Watch: SBI, Coal India, Future Retail, Eicher Motors, telcos

Live Mint  

NEW DELHI: Here are the top 10 stocks that could be in focus on Monday: State Bank of India: The country's largest lender expects to recover around ₹8,000 crore from written-off accounts, including from NCLT resolved cases, in the current fiscal ending 31 March. Future Retail: Lenders to Future group have agreed to halt the sale of Future Retail Ltd’s …

IL&FS scam: Two former executives of crisis-hit lending firm sent to ED custody till 25 June
5 years, 6 months ago

IL&FS scam: Two former executives of crisis-hit lending firm sent to ED custody till 25 June

Firstpost  

Two former IL&FS executives arrested by the Enforcement Directorate for their alleged roles money laundering for the crisis-hit lending firm, were on Thursday remanded to six-day custody of the central agency Mumbai: Two former IL&FS executives arrested by the Enforcement Directorate for their alleged roles money laundering for the crisis-hit lending firm, were on Thursday remanded to six-day custody of …

IL&FS case: Independent directors, rating agencies, auditors under Sebi lens
5 years, 6 months ago

IL&FS case: Independent directors, rating agencies, auditors under Sebi lens

Live Mint  

New Delhi: A large number of individuals and entities, including independent directors, top management personnel, rating agencies and auditors formerly associated with crisis-hit IL&FS may soon face action by capital market regulator Sebi for their role in the alleged fraud at the group. The matter is being probed by multiple agencies, including the Serious Fraud Investigation Office, which has also …

IL&FS may file contempt case against nine banks for unauthorised withdrawals of about Rs 800 cr from firm's escrow accounts
5 years, 7 months ago

IL&FS may file contempt case against nine banks for unauthorised withdrawals of about Rs 800 cr from firm's escrow accounts

Firstpost  

The banks made “unauthorised auto-deduction from IL&FS escrow accounts” in the last six months towards debt recovery The board of debt-laden IL&FS is likely to file a contempt case against nine large banks including State Bank of India, Bank of Baroda, HDFC Bank for unauthorised withdrawals of about Rs 800 crore from the firm’s escrow accounts, a media report said. …

IL&FS fraud case: Whistle-blower sought to uncover scam in 2017, but management covered it up
5 years, 7 months ago

IL&FS fraud case: Whistle-blower sought to uncover scam in 2017, but management covered it up

Firstpost  

The scam at IL&FS came to light last year after several group entities defaulted on repayments due to severe liquidity problems. New Delhi: The long-running fraudulent activities at crisis-ridden IL&FS could have come to light much earlier in 2017, but for a cover-up job done by the top management in connivance with the independent directors on a whistleblower complaint, an …

IL&FS crisis: SFIO identifies top management, auditors and independent directors of IFIN involved in fraud case
5 years, 7 months ago

IL&FS crisis: SFIO identifies top management, auditors and independent directors of IFIN involved in fraud case

Firstpost  

The SFIO is also collecting details about all borrowings by IFIN from banks and through market instruments, as also about the role of banks and their officials and of credit rating agencies. New Delhi: Launching a massive crackdown on perpetrators of the IL&FS scam, the Serious Fraud Investigation Office has charged the erstwhile top management members of the group’s financial …

SFIO identifies ’coterie’ of top management, auditors, directors that defrauded IL&FS
5 years, 7 months ago

SFIO identifies ’coterie’ of top management, auditors, directors that defrauded IL&FS

Live Mint  

Launching a massive crackdown on perpetrators of the IL&FS scam, the Serious Fraud Investigation Office has charged the erstwhile top management members of the group's financial services subsidiary IFIN of forming a "coterie" with its auditors and independent directors to defraud the company while running the business as their "personal fiefdom". Officials also said it is just a tip of …

SFIO arrests former IL&FS Fin Services CEO Ramesh Bawa
5 years, 9 months ago

SFIO arrests former IL&FS Fin Services CEO Ramesh Bawa

India TV News  

Making its second arrest in the IL&FS case, the Serious Fraud Investigation Office Saturday arrested former IL&FS Financial Services chief Ramesh C Bawa, official sources said. Earlier this month, the probe agency arrested former IL&FS vice chairman Hari Sankaran. The sources said IL&FS Financial Services Ltd had borrowings of around Rs 17,500 crore through debt instruments and bank loans. The …

ED finds nearly ₹10,000 crore worth of anomalies in IL&FS books
5 years, 10 months ago

ED finds nearly ₹10,000 crore worth of anomalies in IL&FS books

Live Mint  

Mumbai: The Enforcement Directorate, which is probing an alleged money laundering case at Infrastructure Leasing and Financial Services Ltd, suspects that at least ₹10,000 crore was used for purposes other than stated ones, according to two people with direct knowledge of the matter. “The Enforcement Directorate is already probing the role of former chairman of IL&FS, Ravi Parthasarathy, former vice-chairman …

IL&FS board charges 14 former directors of money laundering, criminal intent; show cause notices issued
5 years, 10 months ago

IL&FS board charges 14 former directors of money laundering, criminal intent; show cause notices issued

Firstpost  

LIC is the single largest shareholder with over 25 percent stake in IL&FS and Japan’s Orix Corp owns a little over 23 percent. New Delhi: Tasked with cleaning up of mammoth financial mess at embattled IL&FS, its government-appointed board has charged 14 former directors of group firm IL&FS Financial Services Ltd of facilitating money laundering, sanctioning loans in violation of …

Govt to seek special dispensation from RBI to defer provisioning of loans to IL&FS group firms; asset monetisation gains pace
5 years, 11 months ago

Govt to seek special dispensation from RBI to defer provisioning of loans to IL&FS group firms; asset monetisation gains pace

Firstpost  

Following the crisis at IL&FS late last year that raised concerns over liquidity in the system, the corporate affairs ministry had superseded its board. New Delhi: The government will soon approach the Reserve Bank of India seeking a special dispensation for deferment of provisioning requirements for bank loans extended to some IL&FS group firms amid ongoing efforts to monetise assets …

NCLT reserves order over allowing former IL&FS directors access bank accounts
5 years, 11 months ago

NCLT reserves order over allowing former IL&FS directors access bank accounts

Live Mint  

Mumbai: Former directors of debt-laden Infrastructure Leasing and Financial Services Ltd have approached the National Company Law Tribunal to seek clarity over allowing them to operate their bank accounts. Saha, Hari Sankaran and Rupa Kapoor, wife of one of the directors Vibhav Kapoor among others sought the tribunal’s intervention to clarify that the restraining order on nine erstwhile top officials …

Ethiopian police take three IL&FS employees in custody over unpaid wages, five still in captivity of staff
6 years, 1 month ago

Ethiopian police take three IL&FS employees in custody over unpaid wages, five still in captivity of staff

Hindustan Times  

Even as five IL&FS employees continue to remain in captivity of unpaid staff in Ethiopia, the local police have taken into custody three Indian officials of the infrastructure company over non-payment of taxes and workers’ salaries, a source said. IL&FS Group and its various subsidiaries, including ITNL, are facing liquidity crisis and have defaulted on various debt payments. Late last …

NCLT Seeks Details Of Personal Assets Of Former IL&FS Executives
6 years, 1 month ago

NCLT Seeks Details Of Personal Assets Of Former IL&FS Executives

The Quint  

Three of the nine named by the Serious Frauds Investigation Office in a report prepared on 30 November were accused by the government of mismanagement at IL&FS. They are Ravi Parthasarathy, former chairman who resigned in July; Hari Sankaran, former vice-chairman and managing director; and Arun K Saha, joint managing director and chief executive officer. The other six named by …

A dozen suitors for IL&FS stake sale in two subsidiaries
6 years, 1 month ago

A dozen suitors for IL&FS stake sale in two subsidiaries

Live Mint  

Mumbai: Infrastructure Leasing & Financial Services has received more than a dozen expressions of interest for acquiring the troubled financier’s stakes in subsidiaries IL&FS Securities Services Ltd and ISSL Settlement & Transaction Services Ltd, the company said in a press release. “IL&FS has received a strong response to its asset monetization process, initiated a fortnight ago, towards developing a resolution …

IL&FS crisis: 10 group firms to be up for sale
6 years, 1 month ago

IL&FS crisis: 10 group firms to be up for sale

Live Mint  

New Delhi: Eight to 10 subsidiaries of Infrastructure Leasing and Financial Services Ltd will be up for sale shortly as its state-appointed board of directors explores a turnaround scheme involving the sale of group companies. The planned sale indicates IL&FS is now going full steam in monetising key group entities, which are not able to service debt as part of …

IL&FS crisis: Govt appointed board hints at corruption by past management; to conduct special audit of key group of cos
6 years, 2 months ago

IL&FS crisis: Govt appointed board hints at corruption by past management; to conduct special audit of key group of cos

Firstpost  

The new IL&FS board pegged the total debt of the group by over Rs 3,000 crore at Rs 94,215.6 crore as of 8 October Mumbai: The Uday Kotak-led government appointed board of crippled infra lender Infrastructure Leasing and Financial Services group on Wednesday informed government and National Company Law Tribunal that it expects to complete the resolution process in stages …

Government considers putting IL&FS up for sale, among other options as it seeks to end company’s debt crisis
6 years, 2 months ago

Government considers putting IL&FS up for sale, among other options as it seeks to end company’s debt crisis

Firstpost  

The government, in a rare move, took control of IL&FS this month after the company defaulted on some of its debt, triggering fears of contagion across India’s financial system. New Delhi: The government is considering putting Infrastructure Leasing and Financial Service Ltd up for sale or divesting some of its assets as it seeks to end the company’s debt crisis, …

IL&FS Transportation Networks to divest stake in some road projects to ease liquidity crunch
6 years, 2 months ago

IL&FS Transportation Networks to divest stake in some road projects to ease liquidity crunch

Firstpost  

IL&FS and its subsidiaries have defaulted on several debt repayments recently due to a liquidity crisis. New Delhi: IL&FS Transportation Networks, a group company of Infrastructure Leasing and Financial Services, on Thursday said it proposes to divest its stake in certain road projects to ease liquidity concerns. According to a regulatory filing, the board considered the proposal for divestment of …

IL&FS misses more debt payments
6 years, 3 months ago

IL&FS misses more debt payments

Live Mint  

Mumbai/Singapore: Infrastructure Leasing & Financial Services Ltd. is missing more debt obligations, even as the Indian government pledged to prevent further defaults, underscoring the challenges its new board faces in fixing the firm’s mounting debt problems. “This amount is peanuts in the big picture, that’s how bad the situation is at the group,” said Rajiv Kochhar, chief executive officer of …

Not stepping down from Maruti board over IL&FS crisis, says R.C. Bhargava
6 years, 3 months ago

Not stepping down from Maruti board over IL&FS crisis, says R.C. Bhargava

Live Mint  

New Delhi: Maruti Suzuki Chairman R.C. Bhargava, ex-director of crisis-hit IL&FS, Thursday ruled out resigning from the board of the auto major, stating as per the law a director needs to step down only when “something is established against” him. He also said at least for the last three to four years, the management and the board of IL&FS had …

The untold tale behind government’s shock takeover of IL&FS
6 years, 3 months ago

The untold tale behind government’s shock takeover of IL&FS

Live Mint  

Mumbai: With the future stability of the Indian financial system on the line, executives running a giant infrastructure lender gathered at the company’s glassy, modernist headquarters in Mumbai and hammered out an ambitious restructuring plan last Saturday to manage a $12.6 billion debt burden after a string of defaults. Jaitley’s team on Sunday sent a confidential note to the Ministry …

Govt’s rescue of IL&FS may spell major losses for lenders
6 years, 3 months ago

Govt’s rescue of IL&FS may spell major losses for lenders

Live Mint  

New Delhi/Mumbai: The government’s move to take control of debt-laden Infrastructure Leasing and Financial Services will only succeed if lenders agree to take substantial losses, government sources familiar with the discussions told Reuters. But IL&FS had compromised on corporate governance and risk management norms, the government told the National Company Law Tribunal on Monday as it explained why it intended …

IL&FS crisis: Govt seizes control of debt-trapped firm; these are 15 members of board that were dismissed
6 years, 3 months ago

IL&FS crisis: Govt seizes control of debt-trapped firm; these are 15 members of board that were dismissed

Firstpost  

The government on Monday seized control of debt-trapped Infrastructure Leasing and Financial Services, superseding its board with one led by India’s richest banker Uday Kotak, and vowed to stop further loan defaults. The Mumbai-bench of National Company Law Tribunal approved six directors, including Kotak Mahindra Bank MD Uday Kotak, former SEBI chairman GN Bajpai and ICICI Bank chairman GC Chaturvedi, …

‘We are in dire straits, please help us,’ a desperate IL&FS urged govt
6 years, 3 months ago

‘We are in dire straits, please help us,’ a desperate IL&FS urged govt

Live Mint  

Mumbai: Directors and top executives of Infrastructure Leasing and Financial Services Ltd desperately pleaded with government officials and the central bank for an urgent bailout just days before the centre moved in to seize control of the debt-laden financier, two people with direct knowledge of the matter said. please help us,” Hari Sankaran told finance ministry officials as recently as …

Sacked IL&FS directors face questions on diversion of funds, negligence
6 years, 3 months ago

Sacked IL&FS directors face questions on diversion of funds, negligence

Live Mint  

New Delhi: Sacked directors of Infrastructure Leasing and Financial Services Ltd will have to face questions on negligence, diversion of funds, failed risk management and misrepresentation of facts that are viewed seriously under the Companies Act. A statement issued on Monday by the corporate affairs ministry and its petition filed before the National Company Law Tribunal blamed the erstwhile directors …

Govt orders serious fraud probe agency to investigate IL&FS, units
6 years, 3 months ago

Govt orders serious fraud probe agency to investigate IL&FS, units

Live Mint  

Mumbai/New Delhi: The Union government Monday ordered an investigation by the Serious Fraud Investigation Office into Infrastructure Leasing & Financial Services and its subsidiaries, as serial debt defaults by the infrastructure lender damaged confidence and send shockwaves through the financial system. A report from the corporate affairs ministry’s Mumbai regional director has “clearly brought out serious corporate related deficiencies in …

Govt pledges liquidity support to IL&FS group
6 years, 3 months ago

Govt pledges liquidity support to IL&FS group

Live Mint  

New Delhi: After moving the National Company Law Tribunal to replace the board of distressed investment firm Infrastructure Leasing & Financial Services Ltd. with a state appointed one, the government on Monday said the company would be provided liquidity support while a turnaround plan was executed. “The government stands fully committed to ensure that needed liquidity is arranged for IL&FS …

IL&FS to raise ₹15000 crore, hike borrowing limit to ₹35000 crore
6 years, 3 months ago

IL&FS to raise ₹15000 crore, hike borrowing limit to ₹35000 crore

Live Mint  

Mumbai: Infrastructure Leasing & Financial Services Ltd, whose recent debt defaults sparked concern about contagion in the financial markets, secured a lifeline after shareholders approved its plans to raise money through debt and equity. Stockholders green-lit IL&FS’s plans to raise as much as ₹ 15,000 crore through a non-convertible debt issue, hike the firm’s borrowing limit by 40% to ₹ …

IL&FS crisis: Take a knife to India’s busted Macquarie clone
6 years, 3 months ago

IL&FS crisis: Take a knife to India’s busted Macquarie clone

Live Mint  

When even a 24-year-old Indian entrepreneur has no difficulty raising $1 billion in a day from global investors, it’s easy to forget that it wasn’t always like this. The $25 million that IL&FS arranged in 1997 via floating-rate notes — guaranteed by USAID and sold to Bear Sterns & Co. — illustrates the chutzpah that sank the firm. Let New …

IL&FS Financial Services declares fresh defaults of ₹395 crore
6 years, 3 months ago

IL&FS Financial Services declares fresh defaults of ₹395 crore

Live Mint  

New Delhi: IL&FS Financial Services on Thursday said it has defaulted on seven fresh payment obligations worth ₹ 395.46 crore. These defaults were in respect of five bank loans totalling ₹ 239.50 crore, term deposit obligation of ₹ 103.53 crore and short term deposit worth ₹ 52.43 crore. In bank loan repayments, it defaulted on ₹ 100.60 crore and ₹ …

IL&FS crisis: Eight charts present financials, other details of cash-strapped infrastructure conglomerate
6 years, 3 months ago

IL&FS crisis: Eight charts present financials, other details of cash-strapped infrastructure conglomerate

Firstpost  

The IL&FS has come under the scanner of multiple regulators, including SEBI, for alleged defaults related to financial disclosures and corporate governance. IL&FS, which is credited for building the longest tunnel in the country, is sitting on a debt pile of around Rs 91,000 crore with IL&FS alone having nearly Rs 35,000 crore, IL&FS Financial Services Rs 17,000 crore, and …

Rise and fall of IL&FS: A bailout is a blunder; India's debt trapped infra financiers are walking on a minefield
6 years, 3 months ago

Rise and fall of IL&FS: A bailout is a blunder; India's debt trapped infra financiers are walking on a minefield

Firstpost  

Whatever the final outcome, IL&FS will never be the same institution again. Regulators – the Reserve Bank of India and the Securities & Exchange Board of India – and the State Bank of India have made reassuring noises about the ‘temporary’ nature of its liquidity problems, and asset managers at some large mutual funds have suggested that there’s nothing to …

IL&FS crises deepens, financial services arm defaults on CP
6 years, 3 months ago

IL&FS crises deepens, financial services arm defaults on CP

Live Mint  

Mumbai: For the third time in a month, crippled infrastructure conglomerate IL&FS Financial Services Monday defaulted on interest payments on commercial papers. Last Friday, its managing director and chief executive Ramesh C Bawa and some key board members had resigned amid crisis in the IL&FS group for alleged defaults in loan payments and corporate governance issues. Earlier this month, it …

IL&FS independent of govt; capable of handling its issues: Economic affairs secretary Subhash Chandra Garg
6 years, 3 months ago

IL&FS independent of govt; capable of handling its issues: Economic affairs secretary Subhash Chandra Garg

Firstpost  

New Delhi: Infrastructure Leasing & Financial Services, which has defaulted on a series of interest payments, needs to resolve issues on its own, Economic Affairs Secretary Subhash Chandra Garg said. On 4 September, it came to light that IL&FS had defaulted on a short-term loan of Rs 1,000 crore from Sidbi, while a subsidiary has also defaulted on Rs 500 …

IL&FS rot needs to be stopped from spreading
6 years, 3 months ago

IL&FS rot needs to be stopped from spreading

Live Mint  

A tad late, but the message is finally reaching India’s regulators: Infrastructure lender IL&FS is not a business that can be allowed to fail without consequences. Some of the group’s finance companies are now missing repayments on short-term paper, even as the unlisted parent’s owners, including state-run Life Insurance Corp. of India, dawdle over an emergency infusion of funds. The …

IL&FS plans fire sale of financial services unit
6 years, 3 months ago

IL&FS plans fire sale of financial services unit

Live Mint  

Mumbai/New Delhi: Infrastructure Leasing and Financial Services Ltd is planning to sell a majority stake in its financial services unit and additional assets worth ₹ 4,500 crore to pay down debts as the company rushes to meet its obligations and avoid bankruptcy. IL&FS has also asked the government to clear dues worth as much as ₹ 16,000 crore for work …

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