The National Company Law Tribunal (NCLT) today allowed the Union Government's interim prayer to reconstitute the Board of Infrastructure Leasing & Financial Services Ltd (IL&FS).
The Mumbai bench approved the takeover of debt-ridden financial firm IL&FS board by government nominees.
It said going by Center's petition, it was apparent that the "affairs of IL&FS were being conducted in a manner prejudicial to public interest".
Center proposed to let six-member team take over IL&FS board
A Mumbai bench of judges MK Shrawat and Ravikumar Duraisamy said the mismanagement at the crisis-ridden IL&FS made the present case a fit one for invoking Article 241 (2) of the Companies Act, 2013, that provides for the suppression of the existing board.
It, thus, approved the Center's proposal to let a six-member team take over the IL&FS board.
Names of the six members taking over IL&FS board
The six board members taking over the IL&FS board are: Uday Kotak of the Kotak Mahindra Bank, retired IAS officer Vineet Nayyar, former SEBI Chairperson GN Bajpai, ICICI's Non-executive Chairperson GC Chaturvedi, IAS officer Malini Shankar, and senior bureaucrat from CAG Nand Kishore.
The new board members have been given the liberty by the bench to unanimously elect a Chairperson from among themselves.
Board members directed to hold first meeting on October 8
The new IL&FS board has been directed to hold its first meeting on October 8, and to submit a report on its findings and a roadmap before the bench by October 31, the next date of hearing.
The bench also issued a notice to IL&FS, directing it to respond to all points raised by Union Government in its plea by October 15 this year.