IL&FS Crisis: Fraud cannot be ruled out, group needs Rs 100 crore monthly to stay afloat, say sources

 The government appointed new six-member management board of the debt-ridden Infrastructure Leasing & Finance Services (IL&FS) will need to make critical decisions as the group needs at least Rs 100 crore per month to stay afloat, said government sources.

According to news agency ANI, the sources said that the possibility of "fraud" can't be ruled out and asserted that the group needed to cut down the unnecessary expenditure in order to survive the cash-crisis.

"Reasonable progress made by Govt appointed IL&FS board led by Uday Kotak. Fraud cannot be ruled out. Unnecessary expenditure should be cut down. The new board needs to take critical and difficult decisions," the sources said.

Also Read | 'Lights, Camera, Scam': Rahul Gandhi’s mordacious attack on PM Modi over IL&FS bailout

The sources said that while the new board has not red flagged on this, but the group required at least Rs 100 crore per month to survive. The board, they said, had also reached out to the National Highways Authority of India (NHAI) for the settlement of the claims.

On October 1, the Narendra Modi government had taken over the management of the debt-ridden IL&FS group. The government has constituted a new six-member management board led by Uday Kotak.

Also Read | Festive bonanza for railway employees, Cabinet approves productivity-linked bonus

The move to take over the group came days after Congress president Rahul Gandhi’s accused PM Modi of using public savings via LIC and the SBI bank to bailout the debt-ridden group. The IL&FS group that finances infrastructure projects across the country has a debt of over Rs. 91,000 crore.