IL&FS seeks legal advice to recover excess remuneration paid to directors
NCLAT. IL&FS is in the process of recovering approximately 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 through financial engineering, though they were in loss.
Earlier this year, books of accounts and financial statements of IL&FS, 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.
Originally, a profit of Rs 1,869 crore was shown by the previous company management and board, which the government later superseded following revelations of irregularities that shook India's financial sector.
«The audited reopened books of accounts and re-casted financial statements for IL&FS, IFIN and ITNL were submitted to MCA (Ministry of Corporate Affairs) on July 31, 2023, June 26, 2023, and April 3, 2023» and later NCLT on June 28, 2024 also took on record the audited re-casted financial statements.
In pursuance of the audited re-casted financial statements, IL&FS has issued 10 letters dated August 13, 2024, IFIN has issued 12 letters dated August 14, 2024 and ITNL has sent 12 letters dated August 14, 2024, to their respective erstwhile directors «seeking recovery of approximately Rs 187.02 crore as excess monies/ remuneration paid within 60 days period».
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