The crisis at IL&FS just got murkier with the government wanting to re-open its books to ascertain financial mismanagement. IL&FS crisis came to light in early September when it defaulted on servicing of several loans, following which the government replaced its board with a new one under top banker Uday Kotak.
Now the government wants to examine its balance-sheets. The corporate affairs ministry on Thursday moved the National Company Law Tribunal (NCLT) seeking to reopen the books of IL&FS Group and its subsidiaries for the past five years under Section 130 of the Companies Act, news agency PTI reported.
This will be the first time when such a move is being taken by the government Section 130 0f the new Companies Act of 2013. The government has requested to check balance sheets of IL&FS and its two subsidiaries –ITNL and IL&FS Financial Services.
Government’s decision to examine ILFS books has come after the Serious Fraud Investigation Office (SFIO) found shocking details of corruption, personal enrichment and other
The court has said that it will seek views of regulatory authorities such as the Reserve Bank, SEBI and the Income Tax Department before taking a decision on the petition.