The government has agreed to prolong renowned banker Uday Kotak’s stint as Chairman and Non-Executive Board Member of IL&FS for another six months. Mr. Kotak will remain on the board of Infrastructure Leasing and Financial Services Limited until April 2, 2022, according to a notice from the Finance Ministry.
He is also Chairman and Chief Executive Officer of Kotak Mahindra Bank. In the 1980’s government-controlled enterprises such as the Central Bank, the Unit Trust of India and Housing Development Finance Corp were founded by IL&FS.
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The Centre chose Mr. Kotak as the chairman of the IL&FS board, which will aid the company’s recovery. The government has replaced the former board. Following that, it was revealed that the organization comprised a complicated network of over 250 businesses, with a total debt to lenders of over 94,000 crores.
Mr. Kotak’s term as IL&FS Non-Executive Chairman has already been extended many times. His previous contract expired on October 2, 2021; however, it has now been extended until April 2, 2020. In a tweet on Tuesday, he also mentioned that the debt-ridden IL&FS group’s board of directors, constituted by the Centre, had increased its projections of aggregate debt recovery to Rs 61,000 crore.
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He said the “Indian government moved promptly” in dealing with the IL&FS predicament and “gave peace to financial markets,” referring to China’s Evergrande issue as a “Lehman-like catastrophe.” A total of 186 of the 347 businesses within the IL&FS Group have been resolved as of April 15, while the other 161 are in different stages of settlement.
