IL&FS accounts not to be declared NPAs, rules NCLAT

The National Company Law Appellate Tribunal (NCLAT) on Monday said the cash-strapped Infrastructure Leasing and Financial Services (IL&FS) and its group companies will not be declared as non-performing assets (NPA) without approval from the appellate tribunal.

A two-member bench headed by NCLAT Chairman Justice (Retd.) S.J. Mukhopadhyay was hearing an application moved by some of its lenders.

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The order comes after the NCLAT on February 11 said that subsidiaries of IL&FS would be divided into three categories -- Green (companies that can meet all debt obligations), Amber (firms that can meet some debt obligations) and Red (companies that can't meet any debt obligations).