The Reserve Bank of India has called the shareholders of Infrastructure Leasing and Financial Services for a meeting next week as the company continues to default on its payment obligations. The central bank will meet IL&FS meeting on September 28 to talk about the recent set of defaults by IL&FS and its subsidiaries, said a Bloomberg report. The meeting will be chaired by a RBI deputy governor, the report further added.
Along with the defaults by IL&FS, the agenda for the meeting will also include discussion on a capital infusion plan, the report said. The shareholders will take up the capital infusion plan at the annual general meeting of IL&FS scheduled a day after the meeting on September 29.
LIC is the largest shareholder in IL&FS with 25.34 per cent stake in the company, followed by Japan's Orix Corporate, which has 23.54 per cent stake in the beleaguered company. The State Bank of India has 6.42 per cent stake in IL&FS.
The RBI has already initiated a special audit of IL&FS after it failed to repay inter-corporate deposits worth Rs 450 crore to Small Industries Development Bank of India (SIDBI). The infrastructure development and finance company has continued to default on its debt obligations through September. The company informed the regulators on Friday earlier this week that it has defaulted on Letter of Credit (LC) obligations to IDBI Bank.
In a separate notification on the same day, the company informed that Ramesh C Bawa, the MD and CEO of its financial services IL&FS Financial Services (IFIN) has resigned with immediate effect. Along with Bawa, four independent directors Renu Challu, Shhubhalakshmi Panse, Uday Ved and SS Kohli, and non-executive director Vibhav Kapoor have also stepped down from the board of IFIN.
IL&FS Transportation Networks (ITNL), another subsidiary of IL&FS Limited, has re-designated its Chief Financial Officer Dilip Bhatia and awarded him the responsibility of asset monetisation.
"We hereby inform that considering the strategic priority of monetisation of the Company's project assets and generating liquidity, the Board of Directors at its meeting held today re-designated Mr Dilip Bhatia, as Chief Strategy Officer responsible for divestment of assets and other strategic initiatives on a dedicated basis," the company said in a stock exchange filing.
Edited by Vivek Punj