New Delhi: IL&FS Group on Monday announced the appointment of Nand Kishore as its new Chairman and Managing Director (CMD) effective from October 1. Kishore is the Managing Director of IL&FS at present, the company said in a statement.
He has been appointed as the CMD of IL&FS with effect from October 1 by the Ministry of Corporate Affairs, the statement said.
Former bureaucrat CS Rajan was serving as the company's Chairman.
"After six years of playing an invaluable role in providing leadership and stability while resolving one of corporate India's biggest financial crises, the term of CS Rajan, Chairman, IL&FS, has come to an end on September 30, 2024," the statement said.
The new board initially took time to understand the complexities and entanglements with more than five layers within the structure of IL&FS. The new board first dedicated itself to keeping all the assets alive and creating a sustainable and legally acceptable resolution framework that could be applied across the over 300 companies within the group, the outgoing Chairman said.
Despite challenges, the board consistently aimed to improve recovery and ensure equitable distribution through India's first group resolution framework, Rajan said.
As per the company, it has achieved debt resolution of approximately Rs 55,000 crores till September 30, 2024, against the target of Rs 61,000 crores.
Kishore is a 1981 batch officer of the Indian Audit and Account Service (IA&AS). He retired as Deputy Comptroller and Auditor General. He looked after audits of defence, railways and communications Ministries, including their departments and public sector units.
He was appointed as the Director by the Central Government on the newly constituted Board of the Company on October 01, 2018, and was the Executive Director from December 21, 2020. He was elevated as the Managing Director of IL&FS on October 03, 2022.
IL&FS Limited is a core Investment Company registered with the RBI holding diversified businesses in Road Infrastructure, Power and Energy, Financial Services, Real Estate etc. through various (direct and indirect) subsidiaries, joint venture entities, jointly controlled operations and associate companies both in India and in overseas jurisdictions and forms IL&FS Group.
The group reported defaults of around Rs 98,000 crore on its borrowing obligations during the financial year 2018-19 after which the Ministry of Corporate Affairs, through the order of September 30, 2018, superseded the Board and appointed a new Board under Uday Kotak.
Rajan has been on the Board of IL&FS for the last 6 years – including 3.5 years as MD and 2.5 years as Chairman. He was appointed to the IL&FS Board on October 3, 2018, soon after the government superseded the IL&FS Board and nominated a new Board.
"I am immensely grateful to the MCA, for reposing trust in the Board, in guiding the intricate resolution process and in extending support whenever and whatever necessary and to the Board for their wise counsel, especially Uday Kotak and Late Vineet Nayyar," said Rajan.
Rajan will continue to be Chairman of Kotak Mahindra Bank.
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