In a boost for investigators probing the wrongdoings of India’s leading infrastructure lender Infrastructure Leasing & Financial Services, the Supreme Court has allowed reopening of its accounts for the last five years.
The Serious Fraud Investigation Office (SFIO) is currently investigating the case related to defaults by IL&FS and 169 subsidiaries on its interest payments last year that triggered a major liquidity crisis in the country’s non-banking finance company sector.
IL&FS has also defaulted on payment of loans to Small Industries Development Bank of India and along with its subsidiaries has a combined debt of over 910 billion rupees (US$13.2 billion).
The debt crisis at the infrastructure lender came to light following a series of defaults by its group companies beginning September 2018. The government dismissed the IL&FS board and appointed a new one, headed by well-known banker Uday Kotak, to plan its revival.
The SFIO in April arrested Hari Sankaran, the former IL&FS managing director and Ramesh C Bawa, former IL&FS Financial Services chief in connection with its probe into loan defaults.
During its investigation, the SFIO found gross violations by IL&FS and its subsidiaries while carrying out credit appraisal and monitoring.
It found that subsidiary IL&FS Financial Services (IFIN) did not have a single borrower with AAA rating by 2017, even as its exposure to unrated borrowers rose to 25% of the asset book.
The crisis also brought to light the dubious role played by some reputed and leading auditing firms such as Deloitte Haskins and Sells (DHS) and BSR and Co, a unit of KPMG.
Also Read: India’s IL&FS board seeks ban on Deloitte
The IL&FS board alleged that the two companies failed to issue warnings about shortcomings while auditing the books of IFIN and called for blacklisting the two audit firms. Meanwhile, SFIO has decided to investigate 35 audit firms having links with IL&FS and its subsidiaries.
Road Transport and Highways Minister Nitin Gadkari has offered assurances that the new government will resolve the stalled projects of IL&FS. He said around 25-30 projects of IL&FS have been stalled due to the debt crisis and his government will bring the number down to zero in 100 days.
This web site is really a walk-through for all of the info you wanted about this and didn’t know who to ask. Glimpse here, and you’ll definitely discover it.
Very efficiently written article. It will be useful to anyone who employess it, as well as myself. Keep up the good work – can’r wait to read more posts.
Saved as a favorite, I really like your blog!
Nice read, I just passed this onto a friend who was doing some research on that. And he actually bought me lunch since I found it for him smile Therefore let me rephrase that: Thanks for lunch!
I used to be more than happy to search out this internet-site.I needed to thanks in your time for this excellent read!! I definitely enjoying each little bit of it and I have you bookmarked to take a look at new stuff you weblog post.
I conceive other website proprietors should take this web site as an model, very clean and fantastic user genial design.
I like this site because so much useful material on here : D.
My partner and I absolutely love your blog and find a lot of your post’s to be exactly I’m looking for. Would you offer guest writers to write content available for you? I wouldn’t mind writing a post or elaborating on most of the subjects you write related to here. Again, awesome web site!
I am impressed with this site, rattling I am a big fan .
I love your writing style genuinely loving this internet site.
You are my breathing in, I possess few blogs and rarely run out from to brand : (.
Heya i am for the first time here. I found this board and I in finding It truly helpful & it helped me out much. I hope to offer one thing again and help others such as you aided me.
certainly like your website but you need to test the spelling on several of your posts. Many of them are rife with spelling problems and I to find it very bothersome to inform the truth however I’ll surely come back again.
Good day very nice site!! Man .. Beautiful .. Wonderful .. I will bookmark your web site and take the feeds additionallyKI’m glad to search out so many helpful information right here in the publish, we’d like work out more techniques on this regard, thanks for sharing. . . . . .
I like this web blog so much, saved to my bookmarks.
Real wonderful visual appeal on this site, I’d rate it 10 10.
You are a very intelligent individual!
It’s perfect time to make some plans for the future and it’s time to be happy. I’ve read this post and if I could I want to suggest you few interesting things or tips. Maybe you could write next articles referring to this article. I wish to read more things about it!
give
I really like your blog.. very nice colors & theme. Did you make this website yourself or did you hire someone to do it for you? Plz reply as I’m looking to design my own blog and would like to find out where u got this from. thanks a lot