IL&FS moves NCLT to recover Rs 185.87 crore from former directors

Infrastructure Leasing & Financial Services (IL&FS) has taken legal action against former directors of its entities, seeking recovery of Rs 185.87 crore in excess managerial remuneration. The recovery process has been unsuccessful so far, with the companies only recovering Rs 91.08 lakh, or less than 0.5% of the total amount. The application, filed on October 28, 2026, names 23 former directors and managerial personnel, including IL&FS chairman Ravi Parthasarathy, who passed away in April 2022.

The recovery is based on remuneration paid between 2013-14 and 2017-18, when the companies reported profits, but later discovered these were losses after a forensic audit. The NCLT has ordered the former directors to refund the disputed sums, either in separate interest-bearing fixed deposit accounts or to declare the payments as excess remuneration.

The Ministry of Corporate Affairs has supported IL&FS's recovery effort, directing the companies to initiate the process and emphasizing the importance of using the recovered funds for creditor distribution.