IL&FS Moves to NCLAT Seeking Release of Rs 145 Cr Held by Guj Discom

Debt-ridden firm IL&FS has approached NCLAT seeking the release of around Rs 145 crore held by  Gujarat Urja Vikas Nigam (GUVNL).

Debt-ridden firm IL&FS has approached the National Company Law Appellate Tribunal (NCLAT) seeking the release of around Rs 145 crore held by the Gujarat-based distribution company Gujarat Urja Vikas Nigam (GUVNL).

A two-member NCLAT bench headed by Chairperson Justice S J Mukhopadhaya has issued a notice to the Gujarat Urja Vikas Nigam over the IL&FS plea. And has directed to list the matter for next hearing on October 15, 2019.

According to senior advocate Ramji Srinivasan appearing for IL&FS, the matter relates to the payment of five IL&FS wind energy companies. IL&FS had approached Gujarat Energy Regulatory Commission regarding this but could not get relief there.

Earlier this month, flagging non-payment of dues by power discoms to renewable energy producers, Union Power Minister RK Singh had cautioned seven states, including Maharashtra and Karnataka, that the developers could approach NCLT against the distribution companies to recover payments. The minister pointed out the power producers are likely to default on their payment obligations due to non-clearance of dues by the discoms and there is a “danger” of them approaching the National Company Law Tribunal (NCLT) for recovering the pending amount.

IL&FS Group, which has a total debt of above Rs 90,000 crore, is going through a debt resolution plan. The entire resolution process is based on the principles enunciated in the Insolvency and Bankruptcy Code and is supervised by Justice D K Jain.

In August, after long deliberations, NCLT) on August 28, 2019, has cleared the sale of IL&FS’s seven wind energy assets to Japan’s Orix Corporation for Rs 4,800 crore which will partially help reduce its debt burden of the company.

Orix Corporation was already an equity partner in the group and owned a 49 percent stake in each of these seven operating wind power plants. The seven wind power SPVs are Lalpur Wind Energy, Etesian Urja, Khandke Wind Energy, Retadi Wind Power, Wind Urja Indiae, Tadas Wind Energy and Kaze Energy.