The order was passed by the Mumbai Bench of NCLT after the Union government sought to attachment of their properties
The National Company Law Tribunal (NCLT) on Monday restrained nine former directors of Infrastructure Leasing & Financial Services (IL&FS) Group from either disposing of their assets and creating third-party rights apart from freezing bank accounts, securities and lockers.
The order was passed by the Mumbai Bench of NCLT after the Union government sought to attachment of their properties. The nine former directors include former chairman Ravi Parthasarathy, Hari Sankaran, Arun Kumar Saha, Vibhav Kapoor, K Ramchand, R C Bawa, Pradeep Puri, S Rangaranjan and Mukund Sapre.
In its order, the Tribunal also observed that these nine individuals will have to disclose their movable, immovable properties, bank accounts, lockers, jointly held properties, etc, not only in India but across the globe.
The Tribunal said, "It is virtually an act of fraud to IL&FS Ltd. This indebtedness was deliberate, wilful and fraudulent act of directors."
The restraining order was passed after the Ministry of Corporate Affairs (MCA) filed Serious Fraud Investigation Office's (SFIO) interim report and argued that there was breach of corporate governance laws.
One of the references was pertaining to the IL&FS Employee Welfare Trust (EWT), which was for the welfare of the employees of the group. The Trustees of EWT and Board of directors of IL&FS Ltd were the same set of people.
The indenture of the trust was amended six times since 1990. While for the first three amendments had Board resolution, for the balance three amendments no Board resolution were moved.
The fifth amendment included that the trustees shall have the powers to sell or any portion or part of the trust investments either by public auction or by private contract... they may in their absolute discretion think fit and proper without being answerable for any loss occasioned.
CRUMBLING EDIFICE
- Rs 91,000 crore – debt of the IL&FS group
- 25.3% – stake LIC owns in IL&FS
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "IL&FS")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}