Infrastructure Leasing & Financial Services (IL&FS) may be rescued by the government and its group firms in a Satyam-like rescue operation. It is expected that the 10-member new board may be headed by Uday Kotak. The government wants to save the company because any failure can have significant impact on the economy of the country affecting banks and mutual funds.

The government of India has sought National Company Law Tribunal (NCLT) nod to takeover IL&FS Management.  The hearing of the case is underway in the matter in the tribunal. The government is likely change the company management.

IL&FS group, an infrastructure conglomerate once hailed as a pioneer of public-private partnership, has come under the scanner of multiple regulators, including Sebi, for alleged defaults related to financial disclosures and corporate governance.

IL&FS is, currently, sitting on a over a debt pile of Rs 91,000 crore, out of which Rs 57,000 crore are bank loans most of which are from state-run banks, as per brokerage reports.

As of March 2018, LIC and Orix Corporation of Japan were the largest shareholders of IL&FS with 25.34 and 23.54 per cent respectively. Abu Dhabi Investment Authority, HDFC, Central Bank of India and SBI held 12.56 per cent, 9.02 per cent, 7.67 per cent and 6.42 per cent, respectively.

The group is said to have sought interim assistance from its government-run shareholders LIC and SBI, but opposition has come from several quarters for any bailout with the public money managed by these marquee public institutions.

(With PTI Inputs)