Despite NCLAT moratorium, lenders have debited ₹759 crore from group firms: IL&FS

Despite a status quo ordered by the National Company Law Appellate Tribunal (NCLAT) on accounts related to IL&FS, some banks and financial institutions have debited ₹758.59 crore from various accounts held by the company’s subsidiaries without authorisation.

In its fifth progress report, IL&FS said: “In contravention to the October 15 order, banks and financial institutions have been debiting the accounts of IL&FS Group entities which are classified as ‘Amber’ and ‘Red’, without authorisation from the Group.” Amber companies are those that are able to partially pay off their loans while the Red ones are those that are unable to meet their debt obligations.