IL&FS seeks recovery of ₹186 crore excess pay from former directors

Infrastructure Leasing & Financial Services (IL&FS) has filed an application before the Mumbai Bench of the National Company Law Tribunal (NCLT) seeking recovery of ₹185.88 crore in what it terms "excess managerial remuneration" paid to its former directors and those of two group companies. The claim arises following a comprehensive restatement of financial statements covering five fiscal years from 2013-14 through 2017-18.

The application names former directors and two major subsidiaries—IL&FS Financial Services (IFIN) and IL&FS Transportation Networks (ITNL)—as respondents. IL&FS has requested that the tribunal issue directions requiring these entities to return the excess remuneration deemed to have been improperly distributed during the restatement period.

The company has also sought an interim direction requiring identified former directors to deposit the contested amounts into separate interest-bearing fixed deposit accounts pending the tribunal's final determination. IL&FS contends that remuneration to erstwhile directors was calculated and disbursed based on profit figures shown in the original financial statements. Upon subsequent restatement of these accounts, the company determined that the directors had received excess compensation not justified by the restated financial position.

The move represents part of IL&FS's broader efforts to recover funds and address financial irregularities following its financial distress, which triggered significant regulatory action and restructuring efforts in recent years.