IL & FS case: Minister of General Affairs says government options, including the crisis, have been sold

GN Bajpai resigns from the board of IL & FSUday Kotak, whose board of directors was headed by IL & FS, had previously stated that various irregularities had been noted in the commercial transactions of the group hit by the crisis. (Reuters)

IL & FS cases: After exploring several options, the government plans to sell IL & FS as a solution for infrastructure lenders in crisis, said Monday Secretary of General Affairs Injeti Srinivas. The NBFC sector is not facing liquidity stress and a crisis situation does not exist in the short term in the NBFC sector, he said. A combination of active and business unit sales could be the solution for IL & FS, CNBC TV18 reported. However, there are serious problems and the likelihood of such a result is limited, said PTI.

"There are different approaches to look at different verticals and verticals grouped into a single consolidated entity. And the last approach is that you have a sale at the asset level, "said PTI. He also said that the government is taking action to address the immediate concerns of the NBFC sector. "Anything that is in the best interests of the stakeholders, including the public interest, will be the factor that will guide a resolution," said PTI.

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In the meantime, a few days ago, Uday Kotak, chairman of the board of directors of IL & FS, had stated that various irregularities had been discovered in the commercial transactions of the group and subsidiaries affected by the crisis, had reported The Indian Express.

The government-appointed council, which submitted Wednesday to the National Commission of Company Law (NCLT) a diagram of its group stimulus plan, also found that much of the group was operating as one and the same company, "no border between legal entities and separate management", which ended up having a contagious impact on its creditors.

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