Infrastructure Leasing & Financial Services Limited’s financial services unit MD & CEO Ramesh C Bawa quits as the parent company struggles to deal with debts.
This resignation came just hours after the parent company IF&LS on Friday informed lenders that it is unable to repay the debt of Rs 250 crore. Along with Ramesh C Bawa, four independent directors and a non-executive director decided to quit the firm.
Provident funds and insurers are among those who had invested in the issue which offered 8.80%, a market source with the direct knowledge of the matter told ET. They were issued in September 2015. “The Trustee has approached the company but did not receive any concrete reply on interest repayments,” said the person quoted above. The defaulted sum would be Rs 22 crore
The firm has also failed to repay corporate deposits subscribed by the Small Industries and Development Bank of India (SIDBI). It only repaid Rs 50 crore out of 250 crore
Kaushik Modak, the incumbent executive director is set to become the new head of IL&FS Financial Services, a source with the direct knowledge of the matter told ET. The directors who quit include Renu Challu, Surinder Singh Kohli, Shubhalakshmi Panse, Uday Ved, Vibhav Kapoor.
IL&FS is burdened with a consolidated debt of around Rupees 88,000 crore, of which Rs 55,000 crore is housed in the special purpose vehicles created to build infrastructure ranging from roads to power companies.
An emergency board meeting is expected to happen soon.
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