The government will move the National Company Law Tribunal (NCLT) to disgorge the assets of errant managers in the distressed Infrastructure Lease & Financial Services Ltd (IL&FS). The idea is to recover what the ministry of corporate affairs regards as unjust money that senior officials in the company made by way of managerial remuneration when group entities were struggling to stay afloat.
Profiting by remuneration that is not in sync with the financial performance of IL&FS was not justifiable, said a government official on condition of anonymity. The ministry will seek disgorgement of the “excessive executive pay” that nine senior officials have made. “It’s daylight robbery,” said the official quoted above.
The Mumbai bench of NCLT on Monday allowed the government’s interim plea to restrain nine erstwhile top officials of IL&FS from disposing of their personal assets, Mint reported on Tuesday. Read More