IL&FS' board to deal with debt crisis: FM Jaitley
New Delhi, Sep 17 : Finance Minister Arun Jaitley on Monday said that the IL&FS' board and its stakeholders will deal with the debt crisis facing the company.
When asked about the IL&FS issue, Jaitley said: "I am not making any comments on this. Let their board and stakeholders deal with the matter."
Jaitley was responding to reporters' queries on reports appearing earlier on Monday which said that the Finance Ministry was approached after the IL&FS' key stakeholder, the state-run Life Insurance Corporation and others rejected a Rs 3,000 crore loan facility.
According to these reports, the company requires this amount to avert default on its Commercial Paper (CP) obligations and a ratings downgrade.
LIC is the largest shareholder in IL&FS with a 25.34 per cent stake while the state-owned State Bank of India has a 6.42 per cent stake.
The two financial institutions are, in turn, under the supervision of the Department of Financial Services (DFS).
The reports, however, said that the Ministry has taken an adverse view of the proposal by IL&FS to stave-off the looming debt crisis.
As part of its fund-raising plans, the company's board had, on August 29, approved a Rights Issue of 30 crore equity shares at Rs 150 per share aggregating to Rs 4,500 crore to shore up its capital. The process would be completed by October 30, the company had said in a statement earlier.
"As on March 31, 2018, IL&FS net worth was Rs 7,400 crore. In addition, the Board approved the re-capitalization of group companies to the extent of Rs 5,000 crore in IL&FS Financial Services, IL&FS Transportation, IL&FS Energy, IL&FS Environment, and IL&FS Education," the company said.
"The Board also approved the Company's specific asset divestment plan based on which IL&FS expects to reduce its overall debt by Rs 30,000 crore. Out of a portfolio of 25 projects identified for sale, firm offers have already been received for 14 projects."
The August 29 statement had also said that the company expects to complete its divestment plan over the next 12 to 18 months in a systematic and professional way to fulfil its commitments.
The group has around Rs 1 lakh crore worth of debt on its books.
IL&FS companies form an ecosystem of expertise across infrastructure, finance and social and environmental services
Initially promoted by the Central Bank of India, Housing Development Finance Corporation Limited and Unit Trust of India, IL&FS was incorporated in 1987.
Over the years, it has inducted institutional shareholders including SBI, LIC, ORIX Corporation of Japan, and Abu Dhabi Investment Authority (ADIA).
As on March 31, 2018, LIC and ORIX Corporation are the largest shareholders in IL&FS with their stake holding at 25.34 per cent and 23.54 per cent respectively. Other prominent shareholders include ADIA (12.56 per cent stake), HDFC (9.02 per cent stake), CBI and (7.67 per cent stake) and SBI (6.42 per cent stake).
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CM Siddaramaiah alleges ‘criminal conspiracy’ in Sringeri recount, vows legal action
Bengaluru (PTI): Alleging a “criminal conspiracy” by BJP candidate D N Jeevaraj in the Sringeri Assembly poll recounting, Karnataka CM Siddaramaiah on Tuesday said the outcome was manipulated after valid postal ballot votes in favour of Congress leader T D Raje Gowda were tampered with during the recounting process.
Following a Karnataka High Court order on an election petition filed by Jeevaraj, challenging Raje Gowda’s election, the reverification and recounting were conducted on Saturday.
After the reverification and recount of postal ballots for the Sringeri Assembly constituency, votes polled in favour of Raje Gowda were reduced by 255, the returning officer said.
A report on the matter has been submitted to the Election Commission of India for further action, the officer added.
Congress leader Raje Gowda had won the 2023 Assembly polls from Sringeri by 201 votes, defeating his nearest rival Jeevaraj.
Addressing a press conference in Bengaluru, Siddaramaiah said the High Court had directed the recounting of postal ballots and that irregularities were noticed during the exercise conducted on May 2.
“This is a clear case of criminal conspiracy,” Siddaramaiah said, alleging that valid votes cast in favour of Raje Gowda were altered after being accepted by counting agents of all parties, including Congress, BJP, and JD(S).
He claimed that during the recounting of postal ballots, 255 votes were initially accepted as valid by all agents but were later tampered with by subordinate officials.
“There is a second mark on the votes polled in favour of Raje Gowda. They had accepted these as valid votes. Subsequently, another mark was made by officials. This is a clear case of criminal conspiracy,” he said.
When asked who was behind the alleged conspiracy, the CM replied, “It was hatched by Jeevaraj and others. It is planned.”
Siddaramaiah further alleged that the returning officer acted improperly by declaring the result despite the presence of an Election Commission observer during the recounting.
“Immediately after the counting, the returning officer announced the result. He should not have done so; this is against the law,” he said.
He pointed out that Raje Gowda had originally won by 201 votes, but after the recounting, the BJP candidate was declared the winner by 52 votes.
“The BJP has committed a criminal act of conspiracy. This is not vote chori but vote dacoity,” he alleged.
The CM said a police complaint had already been filed by Raje Gowda’s election agent, Sudhir Kumar, and emphasised the need for electoral integrity.
“We want transparency and free and fair elections. That is what our Constitution mandates,” he added.
Stating that the government would pursue legal remedies, Siddaramaiah said, “We are preparing an appeal challenging the returning officer’s announcement in a court of law.”
Responding to a separate query on elections in other states, the CM said there appeared to be an anti-incumbency factor in West Bengal, while results in Tamil Nadu were “surprising,” adding that Vijay’s party was emerging as the largest there.
Following the victory of party candidates in Bagalkote and Davanagere South, Siddaramaiah expressed confidence about future electoral prospects in Karnataka.
“Even in 2028, we will win the Assembly elections. We will come back,” the CM said.
Siddaramaiah added that he would order a forensic examination into the alleged tampering of postal ballots.
