IL&FS Financial Services MD and CEO Ramesh C Bawa resigns

IL&FS Financial Services' MD and CEO Ramesh C Bawa has resigned from the company amid crisis in the IL&FS group for alleged defaults in loan payment and corporate governance issues.

In a filing to the BSE, IL&FS Financial Services said Bawa has resigned as managing director and chief executive officer.

The company's independent directors -- Renu Challu, Surinder Singh Kohli, Shubhalakshmi Panse and Uday Ved -- too have put in their papers. Non-Executive Director Vibhav Kapoor has also stepped down.

Infrastructure conglomerate IL&FS has come under the scanner of multiple regulators, including Sebi, for alleged defaults related to financial disclosures and corporate governance.

Earlier this month, it came to light that IL&FS group defaulted on a short-term loan of Rs 1,000 crore from Sidbi, while a subsidiary has also defaulted Rs 500 crore dues to the development finance institution.

While IL&FS has nearly Rs 35,000 crore consolidated debt, IL&FS Financial Services has Rs 17,000 crore of debt, which sits as standard asset for most of the lenders, according to a Nomura India report.

The group has seen its various long-term and short-term borrowing programmes downgraded to 'default' or 'junk' grades by credit rating agencies, even as the regulators are also probing alleged delay in disclosure about certain loan defaults.

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Among others, capital markets regulator Sebi, the Reserve Bank, the Corporate Affairs Ministry and the Finance Ministry have received complaints about alleged wrongdoings at Infrastructure Leasing & Financial Services Ltd (IL&FS) and its various group entities, including the listed ones.