Centre exploring multiple options to resolve IL&FS case: MCA Secy

Last Updated: Mon, Nov 05, 2018 15:42 hrs

[India], Nov 5 (ANI): Ministry of Corporate Affairs (MCA) secretary Injeti Srinivas on Monday said that the government is exploring multiple options for resolution of the Infrastructure Leasing and Financial Services (IL&FS) crisis.

Speaking to media, Srinivas said, "Multiple options are being explored for resolution of IL&FS issues. Whatever is in the best interest of the stakeholders, including public interest, will be the factor which will guide a resolution. As far as IL&FS is concerned, I think the report which has been submitted to the National Company Law Tribunal (NCLT) articulates the approach. It could be in the best interest that IL&FS as an enterprise could be sold as a growing concern."

The MCA Secretary further said "There are serious issues and the likelihood of such an outcome is limited. There are alternative approaches of looking at separate verticals, and verticals going as one consolidated entity. The last approach is that you have an asset level sale. All the three approaches in some sort of permutation and combination can ultimately be the outcome."

Earlier this month, the NCLT had granted permission to the government for superseding the Board of the debt-ridden firm. It also appointed a six-member panel, to be headed by Kotak Mahindra Bank managing Director, Uday Kotak, to take over the management with immediate effect.

On a question regarding the Reserve Bank of India's (RBI) refusal of a demand to open a special liquidity window for Non-Banking Financial Companies (NBFCs), Srinivas said the government and banking regulator are taking adequate measures to address sectoral concerns.

"The segment of housing finance within the NBFC sector is facing liquidity stress and that applies to all entities within that sector. It requires overall easing for which at the macro level adequate steps are being taken. It should be duly addressed in the short term and in the medium and long-term the way you finance and expand will have to be looked into," he added. (ANI)