IL&FS group clears ₹48,463 crore debt, achieves nearly 80% of target

New Delhi, Nov 26 (PTI) Debt-ridden IL&FS group repays its debt ₹48,463 crore in total to its creditors as of September 2025 ₹61,000 crore debt resolution target, according to the latest status report filed before the bankruptcy appellate tribunal NCLAT.

This is 7.02 percent higher ₹45,281 crore has been repaid till March 2025.

“Total debt paid to creditors of Defendant No. 1 Group (IL&FS) as of September 30, 2025: ₹48,463 crore,” the status report statement submitted by IL&FS said.

IL&FS aims to pay off debt ₹61,000 crore from total debt ₹99,355 crore. with refund ₹48,463 crore, nearly 80 percent of the target ₹61,000 crore debt resolution has been completed.

IL&FS segregates liabilities through asset resolution and interim distribution, which includes cash and InviT units, among others.

out of total ₹48,463 crore, “debt resolved by demonetization/termination/transfer of assets to InvIT aggregate (by IL&FS group) ₹25,893 crore,” he said in the affidavit.

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It is also repaying its debts through direct debits, capital services in green entities (profitable IL&FS entities) and release of non-fund based limits used by its subsidiaries.

“These efforts (along with the cancellation of fund-based debt) will result in approximately ₹7,545 crore as of September 30, 2025, IL&FS group informed NCLAT.

Moreover, IL&FS also paid ₹15,026 crore to external creditors through interim distribution.

“As per NCLAT’s order dated May 31, 2022 and other/additional related orders, as on September 30, 2025, the total debt paid through interim distribution was aggregated as follows: ₹16,898 crore, out of this ₹IL&FS reported that ₹15,026 crore was transferred to external financial creditors.

The group also had a cash balance. ₹8,575 crore, out of which “cash available for interim/final distribution ₹406 crore.”

This, ₹Cash of 3,735 crore is retained for going concern expenses, contingent and externally directed claims and the balance. ₹4,108 crore are available in entities under resolution.

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Additionally, the value of InvIT units held by certain IL&FS group entities is aggregated as follows: ₹326 crore.

“Such units have been acquired by the relevant Defendant No. 1 Group entities pursuant to the transfer of certain InvIT SPVs to InvIT, including intra-group distribution,” it said.

At the time of the crisis, the IL&FS group consisted of 302 organizations as of October 15, 2018; of these, 169 were domestic group entities and the remaining 133 were offshore group entities.

The affidavit stated that IL&FS has fully resolved 202 companies, of which 76 are domestic and 126 offshore.

In addition, applications for the resolution of 36 domestic organizations are at various stages and are awaiting approval.

However, applications for 62 entities, 55 domestic and 7 overseas, have not been filed yet as IL&FS is facing difficulties in these cases.

Its subsidiary IL&FS Transport Networks Ltd (ITNL) has completed one of its largest asset solutions by completing the transfer of Chenani Nashri Tunnelway Limited (CNTL) to Singapore-based Cube Highways & Infrastructure II Pte.

CNTL, currently Dr. Syama Prasad operates the Chenani-Nashri Tunnel, also known as the Mookerjee Tunnel. This is India’s longest highway tunnel, a 9.28-kilometer route connecting Chenani and Nashri in Jammu and Kashmir.