Beleaguered IL&FS defaults on ICD payments worth Rs 1.72 billion

Beleaguered infrastructure financier Infrastructure Leasing & Financial Services (IL&FS) has defaulted on interest and principal payments on inter-corporate deposits (ICDs) of Rs 1.72 billion due last Friday.

In a statement to the stock exchanges, IL&FS said the interest default by the company on September 29 was set off by IndusInd Bank towards interest for Rs 164 million against interest service reserve account maintained by the company with IndusInd Bank. “The liability of IL&FS thus stands cancelled to that extent for IndusInd Bank for the month of September 2018,” it said.

In June this year, IndusInd Bank had signed a definitive share purchase agreement with IL&FS to acquire IL&FS Securities Services (ISSL). In the last week of September, IndusInd announced that it had received all regulatory approvals to take over ISSL. The closure of the deal is underway, the statement said.