Government takes control of IL&FS, forms 6-member board led by Uday Kotak
Mumbai, Oct 1: The government on Monday took control of the debt-laden Infrastructure Leasing and Financial Services (IL&FS), whose recent defaults have roiled the markets.
A Mumbai bench of judges M K Shrawat and Ravikumar Duraisamy approved the takeover of IL&FS board by government nominees, saying the mismanagement at the crisis-ridden IL&FS made the present case a fit one for invoking Article 241 (2) of the Companies Act-2013, that provides for the suppression of the existing board.
Why are you trying to save IL&FS with LIC money: Rahul asks Modi
The
bench
said
going
by
the
Centre's
petition,
it
was
apparent
that
the
"affairs
of
IL
and
FS
were
being
conducted
in
a
manner
prejudicial
to
public
interest".
It,
thus,
approved
the
Centre's
proposal
to
let
a
six-
member
team
take
over
the
IL&FS
board.
These six members are - Uday Kotak of the Kotak Mahindra Bank, retired IAS officer Vineet Nayyar, former SEBI chairperson G N Bajpai, ICICI's non-executive chairperson G C Chaturvedi, IAS officer Malini Shankar and senior bureaucrat from CAG Nand Kishore.
The new board members have been given the liberty by the bench to unanimously elect a chairperson from among themselves.
The new board has been directed to hold its first meeting on October 8 this year, and to submit a report on its finding and a roadmap before the bench by October 31, the next date of hearing.
The bench also issued a notice to IL&FS, directing it to respond to all points raised by the Union government in its plea by October 15 this year.
OneIndia News (with PTI inputs)