The Supreme Court has stayed a National Company Law Appellate Tribunal order to reopen past books of Infrastructure Leasing and Financial Services and some of its group companies, but the new management at IL&FS wants the court to vacate its order, people familiar with the development told ET 

In a relief to Hari Sankaran, former managing director at IL&FS, a division bench of the top court stayed NCLAT’s order to reopen books of accounts and recast financial statements of IL&FS Ltd, IL&FS Financial Services Ltd and IL&FS Transportation Networks Ltd for five years, from 2012-13 to 2017-2018, sources said. 

Financial Services Ltd and IL&FS Transportation Networks Ltd for five years, from 2012-13 to 2017-2018, sources said

Sankaran, who was arrested by the Serious Fraud Investigation Office (SFIO) in connection with its probe into loan defaults of IL&FS and its group companies, had challenged the Nat ional Company Law Tribunal (NCLT) order on the ground that it was passed ex-parte, without hearing their side. 

Now, IL&FS has moved the Supreme Court to vacate the order issued by a division bench of Justices Rohinton Nariman and Vineet Saran on April 29, said a person close to the development. “IL&FS’ new board wants to reopen and recast last five years accounts to know the deficiencies,” the person said. 

IL&FS group has accumulated debt of over Rs 91,000 crore and defaulted on some of its commitments. Currently, its newly-appointed board is trying to sell some assets of the group and use the money to reduce debt and revive the company. 

IL&FS had hired Accounting Research Found at ion, through Institute of Chartered Accountants of India, to put accountability on its ex-directors. 

Source://economictimes.indiatimes.com/articleshow/69260481.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst