Mumbai, October 1: The government may move NCLT in Mumbai for management change in IL&FS, according to a TV18 source. Lenders to IL&FS have declined to provide additional loans of Rs 3,500 crore, unless a resolution plan explaining how debt will be repaid is put in place. This development is on the back of shareholders voting it in favour of raising Rs 15,000 crore in the form of debt, while the IL&FS bonds trustee had barred it from distributing any dividends. Rahul Gandhi Fires Fresh Salvo at Narendra Modi, Says IL&FS Means 'I Love Financial Scams' For PM.

According to a Moneycontrol report, IL&FS, which has missed more than five debt payments since August and downgraded by three rating agencies, has filed an application with NCLT. LIC is unlikely to offer a line of credit on an immediate basis to cash-strapped IL&FS. An official as quoted in the report said that a specialist agency Alvarez and Marsal has been appointed for a turnaround. It will take more than 4-6 months to come up with a debt restructuring plan to reduce IL&FS debt.

LIC Managing Director Hemant Bhargava has also stepped down from the IL&FS board. He has been replaced by Rakesh Kumar as LIC’s nominee. Recently Congress president Rahul Gandhi on Sunday fired a fresh salvo at Prime Minister Narendra Modi and said the central government was using public money to bail-out the debt-ridden IL&FS group. Rahul Gandhi said the Modi government was allowing LIC to wrongfully use people’s hard-earned money to help IL&FS, which for PM Modi means ‘I Love Financial Scams’.

(The above story first appeared on LatestLY on Oct 01, 2018 11:43 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).