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.
Hi there, just became aware of your blog through Google, and found that it’s really informative. I am gonna watch out for brussels. I will be grateful if you continue this in future. Many people will be benefited from your writing. Cheers!
Everything is very open and very clear explanation of issues. was truly information. Your website is very useful. Thanks for sharing.
I really like your writing style, superb information, thanks for putting up : D.
Hey very cool blog!! Man .. Beautiful .. Superb .. I will bookmark your web site and take the feeds additionally…I’m satisfied to find so many useful info right here within the submit, we want work out extra strategies on this regard, thanks for sharing.
1967265
Very interesting topic, thanks for posting.
338060
A formidable share, I just given this onto a colleague who was doing somewhat analysis on this. And he actually bought me breakfast because I found it for him.. smile. So let me reword that: Thnx for the deal with! But yeah Thnkx for spending the time to debate this, I really feel strongly about it and love studying extra on this topic. If potential, as you turn out to be expertise, would you mind updating your weblog with more particulars? It is extremely useful for me. Big thumb up for this blog put up!
I like what you guys are up too. Such clever work and reporting! Carry on the superb works guys I have incorporated you guys to my blogroll. I think it’ll improve the value of my web site :).
You could certainly see your enthusiasm within the work you write. The arena hopes for more passionate writers such as you who aren’t afraid to say how they believe. All the time go after your heart.
A formidable share, I simply given this onto a colleague who was doing somewhat evaluation on this. And he actually bought me breakfast because I found it for him.. smile. So let me reword that: Thnx for the deal with! But yeah Thnkx for spending the time to discuss this, I really feel strongly about it and love reading more on this topic. If potential, as you turn into experience, would you mind updating your weblog with more details? It’s extremely helpful for me. Massive thumb up for this blog post!
There are some interesting closing dates in this article but I don’t know if I see all of them middle to heart. There may be some validity but I will take hold opinion till I look into it further. Good article , thanks and we would like extra! Added to FeedBurner as effectively
3555966
I’ve been absent for a while, but now I remember why I used to love this website. Thank you, I’ll try and check back more frequently. How frequently you update your site?
Magnificent goods from you, man. I’ve understand your stuff previous to and you’re just extremely fantastic. I actually like what you have acquired here, certainly like what you are saying and the way in which you say it. You make it enjoyable and you still take care of to keep it sensible. I can’t wait to read far more from you. This is really a tremendous website.
Hi my family member! I want to say that this post is amazing, nice written and come with almost all vital infos. I’d like to look more posts like this .
Hey, you used to write wonderful, but the last few posts have been kinda boring?K I miss your super writings. Past several posts are just a bit out of track! come on!
Do you have a spam issue on this blog; I also am a blogger, and I was curious about your situation; many of us have developed some nice methods and we are looking to trade methods with other folks, why not shoot me an e-mail if interested.
Spot on with this write-up, I actually think this web site needs way more consideration. I’ll most likely be again to learn rather more, thanks for that info.
I simply desired to say thanks once again. I am not sure the things I would’ve carried out in the absence of these opinions contributed by you concerning such industry. This has been a very scary scenario for me personally, however , taking a look at this specialized fashion you treated that made me to leap for delight. I will be happy for your support as well as expect you recognize what a great job you happen to be accomplishing educating other individuals all through a site. Most likely you haven’t met any of us.