Parliamentary panel to discuss developments in debt-ridden IL&FS on October 30

A parliamentary panel chaired by Congress leader Veerappa Moily will meet in Mumbai on October 30 to discuss the developments in debt-ridden IL&FS and finalise a report within two months.

The Standing Committee on Finance has asked representatives of LIC and SBI, which are also shareholders of IL&FS, and the current management to appear before it, Moily said Wednesday.

"On 30th we are meeting IL&FS... We will be calling the current office bearers. Then we are calling the LIC representative and SBI and within a month or two, (we) will give a report," Moily told reporters here.

Debt trapped IL&FS has defaulted on repayment of loans and currently, it has a consolidated debt of Rs 91,000 crore. The government has already seized control of the company by appointing 6 new directors, led by Kotak Mahindra Bank CEO and MD Uday Kotak.

"There will be a thorough inquiry and report which will be made because large stake is involved. Since IL&FS is looking after infrastructure projects and since it is collapsing, it will impact the projects," Moily said.

The 31-member committee includes former Prime Minister Manmohan Singh, Jyotiraditya Scindia (Congress), Dinesh Trivedi (TMC), Saugata Roy (TMC), Kirit Somaiya (BJP), Nishikant Dubey (BJP) and Rajeev Chandrasekhar.

The default by IL&FS has raised liquidity concerns in the financial system.