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.
I am constantly searching online for tips that can benefit me. Thx!
Howdy! This is my first visit to your blog! We are a group of volunteers and starting a new project in a community in the same niche. Your blog provided us useful information to work on. You have done a outstanding job!
I together with my guys have been studying the good information and facts from the website then suddenly developed a horrible feeling I had not expressed respect to the web blog owner for those secrets. Most of the people are already as a result stimulated to learn them and have certainly been having fun with them. Appreciation for actually being really accommodating and for utilizing this form of remarkable information most people are really needing to understand about. My personal sincere apologies for not expressing gratitude to earlier.
Dead pent subject matter, thanks for information .
Hello there, You have done a great job. I’ll certainly digg it and in my opinion recommend to my friends. I’m sure they will be benefited from this web site.
I enjoy the efforts you have put in this, appreciate it for all the great articles.
I do not even know how I finished up right here, however I assumed this submit was once great. I don’t recognize who you are however certainly you are going to a famous blogger if you happen to are not already 😉 Cheers!
Wow that was strange. I just wrote an extremely long comment but after I clicked submit my comment didn’t appear. Grrrr… well I’m not writing all that over again. Anyhow, just wanted to say excellent blog!
Awsome website! I am loving it!! Will come back again. I am bookmarking your feeds also
You are my inspiration , I have few blogs and sometimes run out from to post : (.
Thanks for every other informative website. The place else may I get that type of information written in such an ideal approach? I’ve a venture that I’m just now operating on, and I have been on the look out for such info.
It¦s really a nice and helpful piece of info. I am glad that you shared this useful info with us. Please stay us informed like this. Thank you for sharing.
You are a very bright individual!
Im no longer positive the place you’re getting your info, however great topic. I needs to spend a while finding out more or figuring out more. Thanks for excellent information I used to be on the lookout for this info for my mission.
Thank you for another informative website. Where else could I get that kind of information written in such a perfect means? I have a venture that I am simply now operating on, and I’ve been on the look out for such info.
Hello. excellent job. I did not expect this. This is a fantastic story. Thanks!
Hi, I think your site might be having browser compatibility issues. When I look at your website in Safari, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, fantastic blog!
I simply could not go away your website before suggesting that I extremely loved the usual information an individual provide to your visitors? Is going to be back continuously to check up on new posts
It’s in point of fact a nice and helpful piece of information. I’m happy that you just shared this useful info with us. Please keep us up to date like this. Thanks for sharing.
Can I just say what a relief to find someone who actually knows what theyre talking about on the internet. You definitely know how to bring an issue to light and make it important. More people need to read this and understand this side of the story. I cant believe youre not more popular because you definitely have the gift.