Govt to decide on IL&FS board members' role in other companies

An ousted independent director claimed that the government cannot invoke this section unless the charges are proven, said the report.

The government will decide whether the ousted directors of Infrastructure Leasing & Financial Services (IL&FS) can retain board memberships at other companies or take up new ones, a senior official told ET.
 
“We’ll have to see whether these directors are fit to be on the board of other companies,” he said.  
 
An ousted independent director claimed that the government cannot invoke this section unless the charges are proven, said the report. 
 
“NCLT (National Company Law Tribunal) has gone by the prima facie evidence presented by the government,” he was quoted as saying. 
 
“SFIO will have to prove the allegations individually and it’s difficult to prove the culpability of the entire board. I don’t think right now it will have any implications on my directorship at any of the companies. They’ll have to prove the allegations.” 
 
The debt-ridden company Infrastructure Leasing & Finance (IL&FS) in now under the control of the government.
 
NCLT has sacked the IL&FS board and asked the government to devise a plan for the group by October 15.
 
The government has constituted a panel headed by Kotak Mahindra Bank’s CEO and Managing Director Uday Kotak, with five other members — ICICI Bank chairman Girish Chandra Chaturvedi, ex Sebi chief GN Bajpai, former IAS officer Vineet Nayyar, Malini Shankar and Nanda Kishore.
 
The tribunal will next hear the matter on October 31. 
 
Source: ET, Media reports

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