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NCLT sets bank withdrawal limit for former IL&FS directors

PW Bureau

The court had asked former directors to make their assets known, restraining them from dealing with the securities in any of the companies until the next hearing  Mumbai: The National Company Law Tribunal (NCLT) has imposed a withdrawal limit on the bank accounts of former directors of the debt-laden Infrastructure Leasing and Financial Services (IL&FS). The limit was set at Rs 2 lakh per month after Roopa Kapoor, wife of former IL&FS Investment Managers (IIML) director, Vibhav Kapoor, approached the court earlier this month, claiming her bank account has been frozen by HSBC. Relief for former IL&FS directors  Because of this, the lawyers sought relief and permitted the former IL&FS officials to use their bank accounts because it impacted the life and livelihood of the applicant. The NCLT said that the National Company Law Appellate Tribunal (NCLAT) had modified its order dated December 3 to allow the officials to withdraw Rs 2 lakh a month. NCLT had asked former directors for details on moveable and immovable properties/assets, including lockers in their names, jointly held properties and bank accounts.

Directors were asked to declare assets

The court had asked former directors Arun K Saha, Hari Sankaran, Vibhav Kapoor, Ravi Ramaswami Parthasarathy, RC Bawa, K Ramachand, S. Rengarajan, Mukund Sapre and Pradeep Puri to make their assets known, restraining them from dealing with the securities in any of the companies until the next hearing. “During the pendency of the appeal, we allow the appellant to withdraw a sum of Rs 2 lakhs per month from any one of the bank accounts of the appellant after intimating the Tribunal,” the NCLAT order had said. “The appellant is prohibited from withdrawing any further amount from the said or any other account. This interim order will be applicable from December 2018 until further orders.”