Govt Seizes Control of In-Red IL&FS
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Follow us on: @TheDailyPioneer facebook.com/dailypioneer instagram.com/dailypioneer/ RNI No.2016/1957, REGD NO. SSP/LW/NP-34/2016-18 Established 1864 OPINION 8 WORLD 13 SPORT 15 Published From HEDGEWAR: A NATIVE B’DESH DELAYS PLAN TO SHIFT BAYERN MUNICH HOST DELHI LUCKNOW BHOPAL BHUBANESWAR RANCHI RAIPUR VISION OF NATIONHOOD ROHINGYAS TO REMOTE ISLAND AJAX IN UCL CLASH CHANDIGARH DEHRADUN Late City Vol. 154 Issue 265 *Air Surcharge Extra if Applicable LUCKNOW, TUESDAY OCTOBER 2, 2018; PAGES 16 `3 READING HAS GIVEN ME PEACE: SAIF 14} VIVACITY } www.dailypioneer.com Govt seizes control of in-red IL&FS After NCLT nod, Centre sets up new board, vows to prevent defaults, improve liquidity PTI n MUMBAI/NEW DELHI investors and lenders to prevent IL&FS would create liquidity defaults. crunch in the financial markets. he Government on Remedial steps “The confidence of the Approving the immediate Monday seized control of *Mumbai-bench of National financial market in the credi- takeover of the IL&FS board by T Uttar Pradesh Chief Minister Yogi Adityanath interacts with the children of slain debt-trapped Infrastructure Company Law Tribunal approved bility of the IL&FS manage- six Government nominees, an Apple executive Vivek Tiwari in Lucknow on Monday PTI Leasing & Financial Services six directors, including Kotak ment and the company needs NCLT bench of judges MK Ltd (IL&FS), superseding its Mahindra Bank MD Uday Kotak, to be restored,” the Finance Shrawat and Ravikumar board with one led by India’s SEBI ex-chairman GN Bajpai, Ministry said. Duraisamy said that the sus- richest banker Uday Kotak, ICICI Bank chairman GC The Government, it said, pended directors of IL&FS and vowed to stop further loan Chaturvedi, to take over the had approached the NCLT must henceforth cease to rep- CM Yogi meets defaults. IL&FS board after it was convinced that the resent the company anywhere. This is only the second *This is only the second time governance and management “After considering the time after Satyam Computer after Satyam Computer Services change in IL&FS Group is very Government’s case, we are of Services Ltd that the Ltd that the Government has necessary for saving it from the view that prima facie, this Government has taken control taken control of a private “financial collapse”. is a fit case to invoke Sections Vivek’s family, of a private company board. company board “Continuance of the pre- 241 (2), 242 of the Companies The Government in 2009 sent Board had become preju- Act and to declare that the superseded the board of *The move to take over IL&FS dicial to the interests of the affairs of IL&FS were being Satyam. followed its recent defaults company and its members and conducted in a manner preju- The Mumbai-bench of roiling Indian markets this management was affecting dicial to the public interest,” the assures support National Company Law *The Finance Ministry said the public interest because of its bench said. Tribunal (NCLT) approved six Government found ‘serious adverse impact on financial sta- The Government said in its PNS n LUCKNOW with the bereaved family. A directors, including Kotak corporate related deficiencies’ in bility and making capital mar- plea said that it had chosen to Special Investigation Team Mahindra Bank MD Uday the IL&FS holding company and kets so adversely affected,” the intervene as it impacted the n the backfoot over the (SIT) has been constituted and Kotak, former SEBI chairman its subsidiaries and has ordered Ministry said adding its prayer entire nation’s economy. Omurder of Apple executive it has started probe. Directives GN Bajpai and ICICI Bank an SFIO probe into the financial before NCLT was to supersede The Government cited the Vivek Tiwari by two trigger- have been given to the police to chairman GC Chaturvedi, to irregularities in the NBFC the board of IL&FS and its sub- precedence of the 2009 happy cops, Chief Minister spare no one in this case," Yogi takeover the IL&FS board. stitution by the new Board of takeover of erstwhile Satyam Yogi Adityanath finally met the later said in a statement. This followed the Ministry Directors. Computers and urged the victim's family members and The Chief Minister said of Corporate Affairs moving fully committed to ensuring prayer to reconstitute the board capital markets, the banks and The Ministry said IL&FS bench to invoke the jurisdiction assured them of all help, that the government would NCLT against IL&FS and its that needed liquidity is of IL&FS, observing that the financial institutions in the Group, which has assets of of Sections 241(2) and 242 of including monetary support take care of the family, includ- subsidiaries, seeking a change arranged for the IL&FS from company’s affairs were being credibility and financial sol- `1.15 lakh crore, is presently the Companies Act, 2013. and a government job to his ing the children and Vivek's of the board and management the financial system so that no conducted in a manner “prej- vency of the IL&FS Group is of facing tremendous debt pres- The sections provide for widow. elderly mother. control of the company. more defaults take place and udicial” to the public interest. utmost importance for the sure and struggling to service the Union Government to Victim’s widow Kalpana The state government later Kotak was named as non- the infrastructure projects are The Finance Ministry in a financial stability of capital around `91,000 crore in debt approach the NCLT, and the Tiwari (38), her two daughters announced `25 lakh for the executive chairman of the new implemented smoothly,” the statement said the Government and financial markets. There is which is the outcome of its tribunal to pass orders to reg- and brother-in law Vishnu met family and `5 lakh each for the board. The other directors Finance Ministry said in a found “serious corporate relat- an emergent need to immedi- “mismanaged borrowings in ulate the affairs of a company, the Chief Minister at his 5, education of Tiwari's daugh- approved by the NCLT are statement in New Delhi. ed deficiencies” in the IL&FS ately stop further financial the past”. respectively, in a case where the Kalidas Marg official residence ters. Another `5 lakh was given retired IAS officers Malini “Restoration of confidence” holding company and its sub- defaults and also take measures Before the NCLT, the affairs of such company were for over 25 minutes on for Vivek’s elderly mother. The Shankar and Vineet Nayyar, across markets and the finan- sidiaries and has ordered an to resolve defaulted dues to the Government said the IL&FS not in public interest. Monday. Deputy Chief Chief Minister asked the dis- and veteran auditor cial system in IL&FS group “is SFIO (Serious Fraud claimants,” it said. directors had failed to dis- Taking note of the Minister Dinesh Sharma went trict administration to release Nandkishore. of utmost importance for the Investigation Office) probe into The company would charge their duties and that Government’s arguments, the to Tiwari’s residence and took the money immediately. The move to take over financial stability of capital the alleged financial irregular- require a combination of mea- many mutual funds would col- bench held in its interim order the family to the Chief Yogi also said that Kalpana IL&FS followed its recent and financial markets”. ities in the NBFC. sures like asset sales, restruc- lapse if the company collapses. that the present case was a fit Minister's residence. Tiwari would be given a job as defaults roiling Indian markets. The NCLT allowed the “The restoration of confi- turing of some liabilities and a There were concerns that one to invoke the jurisdiction “This is a shocking inci- per her qualification in Nagar “The Government stands Union Government’s interim dence of the money, debt and fresh infusion of funds by default by a large NBFC like of the above sections. dent and my condolences are Continued on Page 7 CAPSULE 50K farmers on SUBMIT PLAN TO DE-LINK ‘Barred’ Karmapa seeks AADHAAR: UIDAI TO TELCOS 4 shot across Delhi in verge to storm New Delhi: Days after the Supreme Court imposed curbs on the use of Aadhaar, Delhi, police Dalai like freedom in India biometric-issuing authority spate of violence, 3 die UIDAI on Monday asked telecom slap Sec 144 Govt has banned companies to submit, within the BSF jawan held next 15 days, a plan to start STAFF REPORTER n NEW DELHI Dorje residing in dilinking the 12-digit unique ID for gunning down number for customer s 50,000 farmers from UP, US from visiting authentication. AUttarakhand, Haryana, colleague in Gzb, and Punjab are on march from US, JAPANESE PAIR WIN Haridwar to reach the nation- Sikkim monastery NOBEL MEDICINE PRIZE rest killers on run al Capital on Tuesday to gath- Stockholm: Two immunologists, er at Kisan Ghat, the Delhi PNS n NEW DELHI James Allison of the US and STAFF REPORTER n NEW DELHI Police on Monday imposed Tasuku Honjo of Japan, won the prohibitory orders (Section n a major setback to India, 2018 Nobel Medicine Prize for spate of incidents involving 144) in East and Northeast Ithe 17th Karmapa Ogyen research into how the body’s Ashootouts and murder Delhi, anticipating law and Trinley Dorje (32), who has not allowed to even visit The Karmapa is effective- natural defences can fight shook the national Capital on order problems. fled to the US, is now negoti- Sikkim, but the NDA ly the second most important cancer.