NCLT allows IL&FS Transportation Networks to offload shares in an expressway project

The National Company Law Tribunal (NCLT) has allowed IL&FS arm IL&FS Transportation Networks to offload its shares in Moradabad Bareilly Expressway to the Roadstar Infra Investment Trust (InvIT).

The two-member bench, comprising Justice Prabhat Kumar and Justice V G Bisht, in an order approved the transfer of 3,21,40,691 equity shares, which represents the balance shareholding of 14.5 per cent held by IL&FS Transportation Networks in Moradabad Bareilly Expressway, to the Roadstar Infra Investment Trust.

The proposed transaction was approved by the new board of IL&FS and the IL&FS Transportation Networks (ITNL) Board on October 6, 2023.

The Union Bank of India has filed an affidavit in reply on April 26, 2024, conveying its no objection to the proposed sale.

In view of these facts, the tribunal found no reason to deny the prayers in the present application, the order stated.

"Further, IL&FS Transportation Networks is allowed to execute, implement and give effect to the terms of the proposed share purchase agreement as set out in Annexure 25 with Axis Trustee Services Limited and Roadstar Investment Managers," the order added.