New Delhi: There is a shocking revelation in the IL&FS crisis: it is understood that the government has paid up on sovereign guarantees to Asian Development Bank and KfW, a state-run bank of Germany. People who are in the know have revealed that a payment of around $2 million or Rs 13.84 crore has been made to the ADB, at the least in the last couple of months, and around Rs 5 crore has been paid to KfW, sources said.
Significantly, the payment has not been disclosed to the National Company Law Appellate Tribunal, even though the appellate tribunal has asked both the government and the IL&FS board to take its approval before taking any step regarding the cash strapped group. It has come to light that in 2009, the government of India had issued a sovereign guarantee on behalf of Infrastructure Leasing & Financial Services (IL&FS).
The Finance Ministry declined to comment on the IL&FS related queries while ADB did not respond to information sought by IANS. IL&FS also declined to comment on the matter. The crisis in the infrastructure lending company came to light when it defaulted on its commercial papers in September in 2018.
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