The government-appointed board at IL&FS Group is shortly going to put up a fleet of 72 luxury cars for auction, most of which are models belonging to the Jaguar and Audi brands.
The government-appointed board at IL&FS Group is shortly going to put up a fleet of 72 luxury cars for auction, most of which are models belonging to the Jaguar and Audi brands. According to sources, the former IL&FS board had splurged money on a number of luxuries and the fleet of cars was among those purchases. Considering the base variant of both the Jaguar and Audi brands of vehicles are priced at about Rs 40 lakh and above, expenditure on 72 of these high-end vehicles works out to at least Rs 28.80 crore.
Sources said the company will release advertisements in the next few days initiating the auction process. According to IL&FS’ 2018 annual report, the company had 131 permanent employees on its roll, excluding three whole time directors. Looked at from a purely statistical viewpoint, this means there was a high-end luxury car for every two employees, irrespective of their rank and position.
Since the time the new board has taken over, it has had to initiate a number of cost-cutting measures, including reducing the maximum expenditure limit for company-owned and maintained cars from Rs 50 lakh to Rs 25 lakh. It has also slashed salaries by 10% of those employees with a cost to company (CTC) of Rs 50 lakh and above and terminated services of 69 employees (with some exceptions), who had retired but had been retained as consultants.
In order to generate funds, the new board has put up its securities services businesses and renewable energy projects for sale. The board has opted for a process of public auction for sale of the assets, emphasising the need for a formal and transparent process.
In its progress report dated October 31, the board said it has received a number of inquiries expressing interest from various Indian and global investors as well as strategic players with respect to different assets of the group. The board said it is weighing on these, including consulting with experts and advisers already appointed, to follow a due process for their divestment and achieve value maximisation.