Somany Provident Fund Institution on Monday challenged the sale of IL&FS Wind Energy (IWEL)’s assets to Orix Corporation at the National Company Law Appellate Tribunal (NCLAT).
The Kolkata-based fund management company has questioned the NCLT Mumbai’s approval to the sale of seven wind special purpose vehicles to Japan-based Orix, since the NCLAT’s jurisdiction to impose moratorium over loans according to the Companies Act is under challenge.
In October 2018, the NCLAT had stayed all proceedings against debt-laden IL&FS and its group companies on a plea by the Ministry of Corporate Affairs.
A Bench headed by chairperson Justice SJ Mukhopadhaya has issued notice to the MCA and the new IL&FS board. It is likely to pass orders on October 16.
According to IL&FS, provident and pension funds have an exposure of Rs 9,134 crore to its papers.
While IWEL holds 51% shares in these SPVs, Orix owns 49% in seven entities – Lalpur Wind Energy, Etesian Urja, Khandke Wind Energy, Ratedi Wind Power, Wind Urja India, Tadas Wind Energy and Kaze Energy.
Orix exercised its right under the existing pact with IL&FS by matching the price offered by the highest bidder to buy IWEL’s stake in the wind power plants.
The NCLT Mumbai approved its Rs 592 crore-bid to acquire 51% shares on August 28, 2019. The entire sale process was also approved retired Justice DK Jain, the NCLAT-appointed supervisor for IL&FS asset sale.
The IL&FS group had outstanding debt of Rs 94,246 crore as on October 8, 2018.