Government has taken control of Infrastructure Leasing & Finance (IL&FS) after getting an approval from Insolvency & Bankruptcy Court in Mumbai

IL&FS group is reeling under huge outstanding debt worth Rs 91,000 crore and planning to sell assets to raise funds. Of the total debt, about Rs 57,000 is from public sector banks

The National Company Law Tribunal (NCLT) allowed the government to constitute a new board for the debt-strapped lender, asking it to devise a plan for the group and file a response by October 15.

The new board will be headed by Kotak Mahindra Bank’s CEO and Managing Director Uday Kotak along with five other members - ICICI Bank Chairman Girish Chandra Chaturvedi, former head of the Securities and Exchange Board of India GN Bajpai, former IAS officer and Tech Mahindra chief Vineet Nayyar and former IAS officers Malini Shankar and Nanda Kishore.

The tribunal will next hear the matter on October 31.