MUMBAI - India's government is moving to take control of Infrastructure Leasing and Financial Services (IL&FS), two Indian television channels reported on Monday, in a rare move underscoring the extent of the issues at the troubled infrastructure financing and construction behemoth.
CNBC TV 18 and ET NOW reported the government has filed an application with the National Company Law Tribunal (NCLT) to remove the board of the company, whose recent defaults have roiled Indian markets.
An order in this matter is expected to be announced later on Monday, according to ET NOW.
The move to intervene could throw IL&FS's restructuring plan into disarray. IL&FS announced on Sunday that its shareholders have approved a plan allowing it to raise fresh funds via debt and equity issuances.