Govt extends Uday Kotak’s term as IL&FS non-exec chairman by 6 months

The federal government has extended the time period of Uday Kotak as the non-government chairman of Infrastructure Leasing and Economic Products and services (IL&FS) by an additional six months.

Kotak, who is also the handling director and main government officer of Kotak Mahindra Bank would keep on currently being the non-government director on the board of IL&FS till April 2, 2022, in accordance to a notification by Section of Economic Products and services (DFS). His tenure—that has noticed numerous extensions since he was appointed by the federal government to head the shadow lender—was intended to expire on October 2.

The Banking Regulation Act, 1949 prohibits a banking corporation to be managed by an particular person who is a director of any other corporation. Even so, the provision does not apply for a momentary time period not exceeding three months or these kinds of more time period not exceeding 9 months if authorized by the Reserve Bank of India (RBI).

Kotak, who was appointed by the federal government to head the shadow lender’s board in 2018, was authorized by the RBI to be on the board of IL&FS for three months, and for an additional 9 months subsequently. He was more given two extensions of a single year just about every to keep on at the helm of the IL&FS team.

The extension of more six months to Kotak has been granted by the federal government on advice of the RBI, the notification reported.

Previously these days, Kotak tweeted that the federal government-appointed board of the shadow loan provider estimates sixty one for each cent restoration at IL&FS.

Disclosure: Entities controlled by the Kotak spouse and children have a significant shareholding in Small business Conventional

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