NEW DELHI: IL&FS has extended loans without ensuring required asset cover at the time of sanctioning, resulting in the asset-liability mismatch that caused liquidity crisis in the infrastructure and leasing firm, a report has found.
A Grant Thorton interim report has brought to light several instances where loans of up to Rs 2,000 crore were extended by IL&FS to undeserving entities without any security cover or with an inadequate collateral.
Pointing out multiple anomalies in the functioning of the troubled IL&FS group, the report said that “it appears unusual” that for 14 per cent of the loans outstanding to the external parties as on September 30, 2018, the collaterals were not secured.
