Sale of IL&FS Stake In Gift City To Government

Infrastructure Leasing & Financial Services Ltd (IL&FS) has received an insolvency court’s approval to sell its 50% stake in Gujarat International Finance Tec-City Company Ltd to the government of Gujarat, its joint venture partner. The state government has agreed to pay Rs 32.7 crore for the stake, IL&FS said in a statement. While approving the sale, the National Company Law Tribunal (NCLT) said that the price is higher than the fair market value of the stake. The tribunal also cleared the Gujarat government from all tax and third-party claims. The deal is part of IL&FS’ asset sales after the infrastructure financier and operator defaulted on its debts and collapsed in late 2018, prompting the government to install a new board led by banker Uday Kotak.