Govt reshuffles IL&FS board; C S Rajan becomes Non-Executive Chairman

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The government has reshuffled the board of IL&FS Ltd, which is undergoing debt resolution process, with existing board member C S Rajan being redesignated as the Non-Executive Chairman.

Nand Kishore, who was serving as an executive director, has been made the Managing Director, according to the company.

In the wake of financial misdoings coming to light, the corporate affairs ministry had superseded the board of IL&FS in October 2018. The sprawling financial services group has 347 entities under it and resolution has taken place for 246 entities after the ministry-appointed board started the resolution process.

The term of noted banker Uday Kotak, who helmed the resolution process for nearly four years, as the IL&FS Ltd board's Non-Executive Chairman ended on April 2.

Since then, Rajan was serving as Chairman and Managing Director.

Now, the ministry has redesignated Rajan as the Non-Executive Chairman and Kishore as the Managing Director. The latest appointments with immediate effect are till March 2023. "We have been informed by the Ministry of Corporate Affairs of these changes," an IL&FS spokesperson said on Tuesday.

Currently, the board has five members. Besides Rajan and Kishore, the directors are G C Chaturvedi, Malini Shankar and N Srinivasan. Chaturvedi will step down from the board on September 30.

Earlier, the ministry had appointed Rajan as Chairman and Managing Director for six months with effect from April 3. In March, IL&FS said its new board and management had addressed a total debt of Rs 55,000 crore.

"The group retained its overall resolution estimate at Rs 61,000 crore, representing 62 per cent of overall fund-based and non-fund based debt of over Rs 99,000 crore as of October 2018. The debt addressed till date (Rs 55,000 crore) represents over 90 per cent of the overall estimated resolution value.

"Resolution of the remaining Rs 6,000 crore debt will move into FY23," it had said.