Uday Kotak's term extended by one year as IL&FS chairman

The government on September 23 extended the tenure of Uday Kotak as the chairman of bankrupt non-banking financial company (NBFC) Infrastructure Leasing and Financial Services (IL&FS).

The extension has been given for a year with effect from October 3, 2020.

"This extension is a step towards fulfilling the National and Public duty, entrusted on the new IL&FS Board, to resolve one of India's largest financial sector challenges - comprising of over 300 companies in the Group," an IL&FS spokesperson said.

In 2018, the financial mismanagement at the financier led to the subsequent supersession of its board. A new six-member board led by veteran banker Uday Kotak took charge. The other members were former SEBI chief GN Vajpai, ICICI Bank Chairman GC Chaturvedi, Tech Mahindra's Vineet Nayyar, and former bureaucrats Malini Shankar and Nand Kishore.

With Kotak at its helm, the restructured board was mandated to complete the resolution of the IL&FS and its group companies.

The Uday Kotak-led board had found that over 250 companies were a part of the IL&FS Group, which had outstanding dues of over Rs 94,000 crore to lenders. In addition to this, over 90 percent of the flagship company's assets were classified as dud.