IL&FS had invested in the project in 2007 when the company parked Rs 32.5 crore for 50 per cent of the shares. Gujarat government had parked a similar amount in the project and owns the remaining 50 per cent shares.
Citing the challenges, Uday Kotak said the gross non-performing assets of IL&FS Financial Services has gone up to a staggering 90 per cent by the end of December 2018 compared to 5.3 per cent in March 2018.
Hari Sankaran has been arrested on the grounds of abusing his powers in IL&FS through his fraudulent conduct and in granting loans to entities which were not creditworthy or have been declared Non-Performing Assets.
The EPFO’s own investment is nearly Rs 574 crore in IL&FS bonds and so far there has been no default, the official said adding that the retirement fund body may consider moving NCLT if there’s non-payment of interest.