IL&FS To Initiate Recovery Of Rs 187 cr Excess Remuneration Paid to Its Former Directors

New Delhi: The IL&FS Group will initiate before insolvency tribunal NCLT the process to recover Rs 187 crore excess remuneration paid to its former directors and two subsidiaries, which have refused to return the excess managerial remuneration, according to the latest affidavit filed by the debt-ridden firm before NCLAT.

Moreover, IL&FS is also going to reopen the financial statements for 2018-19 and 2019-20. It has received approval from NCLT for incorporating impacts arising from the recast financial statements. “Such revised financial statements for FY 2018-19 have been prepared and are being audited by statutory auditors appointed by NCLT. The revised financial statements will be finalised before the end of 31st December 2025,” the IL&FS Group said.

According to the latest affidavit filed before the National Company Law Appellate Tribunal, IL&FS has issued 10 letters dated August 13, 2024, IFIN has issued 12 letters dated August 14, 2024 and ITNL sent 12 letters dated August 14, 2024, to their respective erstwhile directors seeking recovery of about Rs 187.02 crore as excess monies/remuneration paid to them.

“IL&FS is now in process of filing an application with the NCLT for recovery of excess managerial remuneration from its erstwhile whole-time directors and is in the process of finalising the next steps with respect to pursuing recovery from the erstwhile independent directors in accordance with guidance received from its legal advisors,” the company said.

Last year, books of accounts and financial statements of IL&FS and its two subsidiaries — IFIN and ITNL — were recast on the directions of the National Company Law Tribunal (NCLT) for five years, FY 2013-14 to FY 2017-18, and a loss of around Rs 9,600 crore was found.

Based on this, IL&FS is in the process of recovering Rs 187 crore from the directors and independent directors of the previous board, during whose tenure the company and its two subsidiaries — IFIN and ITNL — were shown in profit of Rs 1,869 crore, through financial engineering, though they were in loss.

IL&FS, however, said that it would file an application before the NCLT against the erstwhile whole-time directors, who owe nearly 90 per cent of the total dues, and also seek recovery from independent directors of these three companies. In pursuance of the audited re-casted financial statements of 2013-14 to 2017-18, three IL&FS entities had already issued notices.