The government has moved National Company Law Tribunal (NCLT) for change of management at the crisis-hit ILFS, according to a senior official.Debt defaults by certain group entities of diversified ILFS 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 ILFS said 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 ILFS include LIC, SBI and Central Bank of India.
ILFS, where LIC is the largest shareholder with 25.34 per cent stake, has a debt burden of over Rs 90,000 crore.(Except for the headline, this story has not been edited by TheIndianSubcontinent staff and is published from a syndicated feed.)