The government has moved National Company Law Tribunal (NCLT) for permission to takeover management of the crisis-hit IL&FS Management. The matter is current being heard at the tribunal.
Debt defaults by certain group entities of diversified IL&FS have triggered fears of liquidity crisis in the financial markets and the RBI has been taking steps to improve the overall cash situation.
The corporate affairs ministry has applied to the tribunal, the official said Monday.
Sources close to IL&FS told PTI that it is likely to support the application as it will help resolve all the pending issues and reach at a comprehensive solution for the benefit of all stakeholders.
The key shareholders of IL&FS include LIC, SBI and Central Bank of India.
IL&FS, where LIC is the largest shareholder with 25.34 per cent stake, has a debt burden of over Rs 90,000 crore.
The government's dealing with the IL&FS crisis had come under political ire yesterday when Congress chief Rahul Gandhi accused Prime Minister Narendra Modi of using people's money to bailout the company.
In a tweet, Gandhi alleged that Prime Minister Narendra Modi is bailing out the IL&FS group which has a long-term debt liability of around Rs 91,000 crore via public savings in LIC and the State Bank of India (SBI).
The tweet in Hindi titled "Lights, Camera, Scam", alleges that in 2007 when Modi was the Gujarat Chief minister, IL&FS was given the 'GIFT CITY' project worth Rs 70,000 crore. Till date no work has been achieved under the plan.
Gandhi added that in 2018, Modi was bailing out the same company via LIC an SBI. (Read full story here)
(With inputs from agencies)
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