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The report cites government sources to state that the government was not satisfied with the present board of IL&FS continuing with CAM as its legal advisor. This, after a complaint was filed with the Union Ministry of Corporate Affairs alleging conflict of interest on the part of the law firm.
CAM, on its part, had denied any conflict of interest.
After the Ministry’s directive to look into the issue, the new Board of Directors of IL&FS started the process of finding law firms for the position of legal advisor.
And now, it is understood that P&A Law Offices will collaborate with CAM to provide legal advice to IL&FS.
IL&FS, India’s leading infrastructure finance company, defaulted on payment to lenders, triggering panic in the market. The dues stand at more than Rs. 94, 000 crore.
By way of an order dated October 1, 2018, the NCLT invoked its powers under Sections 242, 242, 246 r/w 339 of the Companies Act and granted the interim prayer of suspending the existing Board of Directors and reconstituting the same with the six persons proposed by the Centre.
On June 4 this year, the Supreme Court allowed the SFIO to reopen and recast accounts of IL&FS and two of its subsidiary companies for the last five years.
Last week, the Bombay High Court granted interim relief to IL&FS former auditor Deloitte Haskins and Sells from coercive action in the criminal complaint filed by Serious Fraud Investigation Office (SFIO) before the trial court.