IL&FS Group Recovery Proceedings & Debt Resolution Status

Executive Summary The Infrastructure Leasing & Financial Services (IL&FS) Group has initiated decisive legal measures before the National Company Law Tribunal (NCLT) to recover ₹187 crore in excess remuneration paid to former directors. Concurrently, the Group reports steady progress in its debt resolution framework, having discharged over ₹48,000 crore to creditors as of September 2025. Key Developments 1. Recovery of Excess Remuneration (₹187 Crore) Legal Action: IL&FS is filing applications with the NCLT to recover excess payouts from erstwhile whole-time and independent directors of the parent company and its subsidiaries, IFIN and ITNL. Rationale: The claim is based on the restated financials for FY 2013-14 through FY 2017-18. The recast books revealed a cumulative loss of ~₹9,600 crore, contradicting the originally reported profit of ₹1,869 crore. Consequently, managerial remuneration paid during this period is deemed recoverable under Section 199 of the Companies Act (recovery in cases of fraud/non-compliance). Current Status: While two independent directors have voluntarily returned funds without admitting liability, the erstwhile whole-time directors—who account for nearly 90% of the dues—are contesting the demand. 2. Financial Restatement & Audit The Group is reopening financial statements for FY 2018-19 and FY 2019-20 to incorporate the impact of the historical recast. The revised statements are currently being audited by NCLT-appointed statutory auditors, with finalization targeted before December 31, 2025. 3. Debt Resolution Progress (As of Sept 2025) Discharged Debt: The Group has successfully discharged ₹48,463 crore to creditors. This reflects a 7.02% increase from the ₹45,281 crore resolved as of March 2025. Resolution Guidance: IL&FS maintains its aggregate resolution target of ₹61,000 crore, representing approximately 61.39% of the total external debt outstanding (₹99,355 crore).