Every passing day, there may be some new revelations coming out from the mess of Infrastructure Leasing and Financial Services (IL&FS) and its 348 institution corporations. IL&FS Trust Co Ltd, a subsidiary of an IL&FS organization, universal a cost of Rs280 crore as the mortgage for assets offered on an identical day for Rs272 crore. On the same day, IL&FS Trust Co subscribed to privately located debentures of VGN Developers Pvt Ltd, well worth Rs280 crore, famous a record.
According to the file from Savukkuonline (https://www.Savukkuonline.Com/14806/), VGN Developers Pvt Ltd paid Rs272 crore for 11.021-acre property in Guindy belonging to Chennai-based totally Hindustan Teleprinters Ltd (HTL). In the bidding method with bankers led with the aid of State Bank of India (SBI), the report says, VGN Developers turned into the sole bidder who made a proposal of Rs272 crore for the belongings.
“On an equal day the deal turned into finalized, VGN Developers mortgaged the belongings to IL&FS Trust Co for Rs280 crore. While it is the ordinary banking widespread to pay eighty% of the mortgaged belongings fee as the loan, VGN Developers bought these belongings for the Rs272 crore and mortgaged the equal for Rs280 crore,” the document says.
From the agreement, it seems that on the day of the deal itself, IL&FS Trust subscribed to VGN Developer’s privately positioned debentures worth Rs280 crore.
Questioning the purpose in the back of this, Rajendra M Ganatra, an insolvency decision professional and restructuring consultant, says, “For this type of investment, there needs to be due diligence of the sponsor, the identity search, the valuation and a bunch of other things. Here VGN Developer got the investment with a bad contribution of Rs8 crore. On the day of shady Rs272 crore land deal of VGN Developers, IL&FS gave Rs280 crore of VGN’s rated, listed debentures. Who rated the debentures, and in which changed into it listed? (This) smacks of crook nexus. No prudent lender can do this. That is how a favored organization has been destroyed. There is a want for the complete investigative audit of an IL&FS institution.”
The consortium of banks headed by means of SBI had fixed the reserve rate for the HTL belongings at Rs250 crore and finalized the deal on 19 June 2013 for Rs272 crore with VGN Developers.
“As per registration department statistics, the guideline price of the stated land involves Rs376.26 crore as on 19 June 2013, when the sale was finalized. VGN Developers paid a stamp responsibility for a price of Rs376.26 crore and not for the actual sale price of Rs272 crore,” the file says.
Savukkuonline says the HTL land is a high-cost asset. “The land has a permissible built-up space of 2.5 times of the land area. Since the land has been reclassified from ‘business’ to ‘residential’, its marketplace fee might be extra than the guideline cost fixed by way of the government. Further, the land is located in Guindy, which has locational benefit, nearby airport, and metro connectivity. As in line with the advertisement located in newspapers at that point for a realty assignment simply close to to the land offered by means of VGN Developers, the asking price turned into Rs12,000 per square ft. However, the sale fee turned into finalized far under the marketplace or tenet value.”
The main query here is why could a subsidiary of the IL&FS institution accept a higher price for a loan while the belongings became sold for less?
According to the information compiled by REDD Intelligence, the debt-ridden IL&FS group holds property of around Rs1, sixty-five,000 crores. Its corresponding overall liabilities is round Rs1,32,000 crore. The reported consolidated liabilities at IL&FS (conserving company), is round Rs1,06,500 crore and inter-group liabilities is around Rs25,500 crore. Similarly, inter-institution belongings come round Rs49,000 crore, indicating an fairness of Rs23,500 most of the group corporations.
The IL&FS story started unraveling after Moneylife first wrote approximately its default to SIDBI. (Read: IL&FS defaults on Rs1,000 Crore Short-time period Loan from SIDBI?)
Despite going for walks rankings of different initiatives and corporations, IL&FS has said a loss or meager earnings during the last three years for which records are available.
Over the past 10 days, many of these sufferers have started to speak out, specifically after the gold-plating of the GIFT City project was exposed with the aid of Moneylife.