Lot of headway being made in IL&FS matter, first phase of resolution will be completed in few months: Corp affairs secy
On Monday, NCLAT said no bank or financial institution can declare the accounts of debt-ridden IL&FS and group companies as non-performing assets without its permission
Former Supreme Court judge DK Jain is supervising the resolution process of IL&FS group
Regarding the NCLAT order, Jain said its scope should not be expanded what it is meant for
On 11 February, the NCLAT Monday allowed 22 companies of crisis-hit IL&FS group to service their debt obligations
New Delhi: The first phase of resolution for problems faced by IL&FS group is expected to be completed in the next few months, as a lot of headway is being made in addressing the issues, a senior official said Tuesday.
On Monday, the National Company Law Appellate Tribunal (NCLAT) said no bank or financial institution can declare the accounts of debt-ridden IL&FS and group companies as non-performing assets without its permission.
"It is moving as per plan. I think a lot of headway is being made and... in next few months, the first phase of resolution should be completed," Corporate Affairs Secretary Injeti Srinivas said.
He was responding to a query about the progress being made with respect to IL&FS case.
Speaking on the sidelines of an event organised by industry body CII, he emphasised that pro-active steps have been taken regarding the IL&FS matter.
Former Supreme Court judge DK Jain is supervising the resolution process of IL&FS group.
Regarding the NCLAT order, he said its scope should not be expanded what it is meant for.
"IL&FS has not gone to IBC. Automatically, the moratorium under the IBC is not applicable. IL&FS management was changed under the Companies Act. There is no direct provision of moratorium," he noted.
"In the overall framework, there is a provision that if liquidation is not the best option, then the tribunal can give whatever dispensation that may be required to allow other best option and in this case, it is resolution.
"Based on that overall sort of spirit of those provisons, the NCLAT agreed with the government's proposal to allow moratorium. There is no regulatory gap," Srinivas said.
On 11 February, the NCLAT Monday allowed 22 companies of crisis-hit IL&FS group to service their debt obligations.
Under the plan, the government has categorised IL&FS group companies into green, amber and red based on their respective financial positions.
The Gujarat Metro Rail Corporation has awarded the balance work to J Kumar Infrastructure and has also started to encash the bank guarantee of IL&FS.
"The newly appointed board of IL&FS is in the process of preparation of roadmap and its subsequent submission to NCLT, which will require IL&FS Transportation Networks Ltd (ITNL) to undertake divestment, restructuring and/or consolidation of its assets...which will have an impact on the accounting and financial aspects of ITNL," the company said in a BSE filing.
The Parliamentary Standing Committee on Finance will take stock of the developments at crisis-hit IL&FS Group for three days from 3 December