ILFS has a debt pile of more than Rs 91,000 crore The government said on Monday that major financial problems in debt-ridden Infrastructure Leasing Financial Services (ILFS) began before 2014.
"Deterioration in the financial performance and substantial leveraging of the ILFS Group started many years ago on account of stalled projects in infrastructure sector largely owing to wrong decisions and policy paralysis before 2014," said the government, after the National Company Law Tribunal (NCLT) approved the government's plea to reconstitute the top brass of ILFS.
A string of defaults by ILFS in recent weeks has led to a series of credit rating downgrades on the company and its subsidiaries that hold some of its debt pile of Rs 91,000 crore.