Lawstreet Journal

IL&FS Stake Sale in GIFTCL to Gujarat Government approved by NCLT

Lawstreet Journal 28 May 2020 8:35pm

Image courtesy: Lawstreet Journal Business IL&FS Stake Sale in GIFTCL to Gujarat Government approved by NCLT

In a recent update it is was notified that the National Company Law Tribunal has approved the crisis-hit IL & FS to selling its stake in Gujarat International Finance Tec-City Company (GIFTCL) to the Gujarat Government. It has also been recorded that IL & FS have about 50 per cent stake in GIFTCL. 

The payment of a positive equity value of 100 per cent of the IL & FS stake in GIFTCL has been agreed by the Gujarat government by which, the positive equity value of over Rs 32.70 crore will come to IL & FS according to the order issued by the NCLT. 

It was further stated in the order that the IL & FS had sought for an amount of Rs 61.84 lakh is excluded as resolution process costs incurred for meeting various expenditures, other applicable taxes from the sale proceeds of the applicant’s shareholding in GIFTCL to the Gujarat government.

IL & FS have also been permitted by the NCLT to withdraw a sum of Rs 3 crore from the escrow account opened to keep sale consideration for meeting the additional process resolution costs that may therefore arise, after approval by the Board of Directors appointed by the tribunal. 

A statement issued by the NCLT read as follows: “In view of the relief sought by the applicant, this bench hereby approved that sale of shares of GIFTCL held by IL & FS to Governor of State of Gujarat/ Gujarat Urban Development Company Limited shall be free and clear from all encumbrances,… Continue Reading...


Tagged: NCLT   National Company Law Tribunal  
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