Industry veteran and Vice-Chairman of the IL&FS Group Vineet Nayyar sees a clear problem why the infrastructure conglomerate fell like a pack of cards: unrestrained spending.
“My colleagues here, and pardon me for saying so, had no for money,” Nayyar said addressing the media as the IL&FS board met a year after it was appointed by the government. “Expenditure was lavishly done.”
I have never seen so many automobiles in a company as I see here. These were the kind of issues. An important consequence of this was, that if you have no respect for money or little respect for money, you also have an issue of over-expenditure and not watching every penny carefully.Vineet Nayyar, Vice-Chairman, IL&FS Group
Nayyar, who is also credited with turning around fraud-hit Satyam Computer Services after Tech Mahindra Ltd. took over the company, said that even that was a “very well managed company”.
“I worked for Satyam for about 10 years after Satyam went bust. Even there, there were far better controls than I have seen here. In fact, Satyam was in many ways a very, very well-managed company as compared to here (IL&FS),” Nayyar said.
The board, led by Uday Kotak, today outlined plans to resolve the complex Infrastructure Leasing & Financial Services Group. Kotak said that board was confident of recovering at least 50 percent of the Rs 98,000 crore in debt by 2020.
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