CS Rajan appointed MD of IL&FS, Vineet Nayyar named Executive Vice-Chairman

A day after the former Vice-Chairman and Managing Director of scandal hit Infrastructure Leasing & Financial Services (IL&FS) Hari Sankaran was arrested on fraud charges, the company announced two new appointments on April 3.

Vineet Nayyar has been appointed as Executive Vice-Chairman while CS Rajan has been named Managing Director. Rest of the new board comprises of Bijay Kumar as the deputy managing director and GC Chaturvedi, Nand Kishore, Malini Shankar and N Srinivasan as non-executive directors.

IL&FS Chairman Uday Kotak, who was roped in to put the troubled firm back on track, is presenting a status report on where the company stands after six months.

Kotak said that in addition to whole time board members, the firm has a solid team managing the entire resolution process. An operating committee has also been put in place.

Sankaran's was the first arrest made in connection with the ongoing investigations into the affairs of IL&FS and its group entities.

The Enforcement Directorate (ED) is investigating the alleged money laundering of Rs 2,364 crore from the books of IL&FS, identified in a forensic audit performed by Grant Thornton.

IL&FS had borrowings of over Rs 17,000 crore from debt instruments and bank loans. Provident funds, pension funds, gratuity funds, mutual funds, public and private sector banks, are among those who have invested in these debt instruments.