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IL&FS is selling ‘family silverware’ to raise funds

PW Bureau

The group has invited bids to sell 36 luxury cars, used furniture and white goods on ‘as is where is’ basis at its properties in Mumbai and Kolkata New Delhi: In order to raise funds, crisis-ridden Infrastructure Leasing & Financial Services (IL&FS) group firms are going to put all sorts of things on the block — high-end cars, office furniture, electrical appliances and other assets.

Bids invited for sale

The group has invited bids to sell 36 luxury cars, which includes brands like Audi, BMW, Jaguar, Mercedes Benz, Land Rover, Honda, Toyota, and Skoda, and has set a base price of a little less than Rs 90 million for these vehicles. Similarly, a separate bid document released by IL&FS invited bids for lump sum sale of used furniture and white goods on ‘as is where is’ basis at its properties in Mumbai and Kolkata.

The backdrop

The group is facing a serious liquidity crisis and has defaulted on various debt repayments since August 27. The IL&FS group sits on a debt pile of over Rs 900 billion. Recently, the Centre had dissolved the IL&FS board and roped in seasoned banker Uday Kotak to steer the group out of its present crisis. State-run LIC is the largest shareholder and owns a fourth of the firm’s equity. The other shareholders include Orix Corporation of Japan, Abu Dhabi Invest­ment Authority, Central Bank of India, and SBI. Over the years, the company has invested over Rs 1,890 billion in infrastructure projects, primarily in surface transport, energy and urban infrastructure.