SC seeks IL&FS Fin Services ex-director’s response on pleas by govt, IL&FS

SC seeks IL&FS Fin Services ex-director’s response on pleas by govt, IL&FS

The Supreme Court on Monday sought response from IL&FS Financial Services’ former vice-president and director Hari Shankaran on the pleas by the government and Infrastructure Leasing and Financial Services (IL&FS), seeking vacation of the apex court’s April order staying an NCLAT decision.

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The Supreme Court on Monday sought response from IL&FS Financial Services’ former vice-president and director Hari Shankaran on the pleas by the government and Infrastructure Leasing and Financial Services (IL&FS), seeking vacation of the apex court’s April order staying an NCLAT decision.

The NCLAT had ordered reopening of the books of accounts and recasting of the financial statements of the debt-ridden firm and its two other group entities for the past five years.

At present, IL&FS group companies, with a collective debt of over Rs 90,000 crore, are going through resolution process.

A vacation Bench led by Justice Indira Banerjee issued the notice to Shankaran on whose appeal the SC had stayed the NCLAT’s January 31 order that allowed reopening of the books of accounts and recasting the financial statements of IL&FS, IL&FS Financial Services and IL&FS Transportation Networks for the past five financial years.

The appellate tribunal had also directed the government to appoint such person/ firm as the chartered accountants to recast the accounts/financial statements of all the three companies for the these five years.

Shankaran had alleged that the January order was passed ex-parte without giving him any hearing.

The corporate affairs ministry and IL&FS had told the SC that the reopening of accounts was ordered on the basis of the interim SFIO report and the prima facie findings of the disciplinary committee of ICAI by which the erstwhile board of directors was suspended on grounds of mismanagement itself.

Source- Financial Express.

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