Mumbai, April 3 (IANS) IL&FS Non-Executive Chairman Uday Kotak said on Wednesday said that numerous provident and pension funds including those of the Indian Army have exposure to the company's bonds.
IANS has been extensively covering the Army Group Insurance Fund's (AGIF) exposure to toxic IL&FS bonds amounting close to Rs 210 crore.
The development assumes significance as it means that crores worth of insurance premiums, covering all ranks from generals to JCOs and jawans, are at risk of being lost.
The new management of Il&FS under Kotak did not elaborate any specific plan to ensure that PF money is protected. Sources said that various courts are already looking into the matter through a clutch of intervening petitions filed by PF and pension funds including those run by corporates.
Kotak spoke at a press conference here to announce the appointment of Chandra Shekhar Rajan as the company's Managing Director.
Rajan was the Non-Executive Director of IL&FS for the last six months.
So far, Vineet Nayyar was the Executive Vice Chairman and Managing Director of the company. He would now continue to be the Executive Vice Chairman.
"Rajan who was on the board for the first six months in the capacity as Non-Executive Director, effective today is the Managing Director of IL&FS," Kotak said at a media briefing after the IL&FS board meeting.
"I continue to be the Non-Executive Chairman," he said.
In a presentation, the company said that it expects to complete monetisation of its assets by May as the company is in good shape and its assets can be sold.
IL&FS group's total outstanding debt currently stands at Rs 99,354 crore, said N. Sivaraman, the Chief Operating Officer.
--IANS
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