6 ex-IL&FS executives named

New Delhi: With the probe of contagion IL&FS getting wider day-by-day, as many as six high-profile executives of the infrastructure giant have been named in the interim report filed by the Ministry of Corporate Affairs (MCA).

At a hearing in the National Company Law Tribunal (NCLT) held in Mumbai on Monday, the MCA filed its interim report on the IL&FS case, naming several high-profile individuals and 302 group companies as respondents.

The MCA, in its report also mentioned that 39 companies that were listed as part of IL&FS have ceased to be group companies and SFIO is probing the matter. The report is based on an ongoing probe by the SFIO and the investigating agency is probing how the alleged fraud happened.

In the MCA report, top executives from IL&FS group such as Vibhav Kapoor, Pradeep Puri, K. Ramchand, S. Rangarajan, R.C. Bawa and Mukund Sapre, have been alleged for the fund diversion in the company. The government is also seeking attachment of movable and immovable properties of these top executives.

However, a top source told this newspaper that the MCA also sought attachment of properties of some other directors of debt-ridden IL&FS and wanted to freeze all assets, securities, lockers, bank accounts of the then top executives Ravi Parthasarathy and Hari Shankaran as well.

“At the time of hearing, the counsel for the government told the NCLT that interim probe shows manner in how the fund diversion took place at IL&FS. The NCLT also agreed to make these executives as parties to the case and allowed the company application to make all of them respondents in the case,” the source said.

As per the government counsel, “Rangarajan was the MD and CEO of IL&FS Securities, Sapre was the executive director of IL&FS Transportation Networks (ITNL), while Bawa was the MD of IL&FS Financial Services and Puri, an officer from the Indian Administrative Services was the chairman of IL&FS Water Ltd,” the counsel said.

Last week, the new board of IL&FS initiated the process to sell its renewable energy business and invited expression of interest proposals from prospective buyers.

IL&FS assets from the renewable energy business put on the block include, operating wind power generating plants with aggregate capacity of 873.5MW, and its under-construction wind power generating plants with aggregate capacity of 104MW.

Its asset management services for the wind power generating plant, business division that carries out project development and implementation of wind power plants will also be sold.

The MCA had approached the appellate tribunal after the Mumbai bench of NCLT turned down its plea to grant 90-day moratorium over the loans taken by IL&FS and its subsidiaries.

On October 1, 2018, the NCLT suspended the board of IL&FS on the government’s plea and authorised reconstitution of the board by appointing seven directors two days later.

As far as loan repayment issue is concerned, several lenders of IL&FS had opposed the 90-day moratorium over loans taken by the debt-laden group and its subsidiaries. Lenders also requested the NCLAT to allow them not to classify IL&FS accounts as NPAs in case of defaults.