Indian two thousand and five hundred rupee banknotes are arranged for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Government To Charge Axis Bank, Standard Chartered And Others With Contempt Of NCLT

The Corporate Affairs Ministry will on Friday file contempt of court petitions against Axis Bank Ltd. and Standard Chartered Bank for their alleged role in former IL&FS Financial Services Managing Director Ramesh Chander Bawa and his wife disposing off a portion of their assets which were frozen by the National Company Law Tribunal.

The ministry is filling two applications and a petition against Bawa and his wife and the banks after it has come to light that the parties have broken the orders of the bankruptcy tribunal.

A bench of VP Singh and Ravikumar Duraisamy had on Dec. 3, 2018, restrained the former directors of the crippled IL&FS group from mortgaging/selling, or creating third-party interests or in any way alienating movable or immovable or jointly held properties.

However, the NCLT had allowed the former directors of the crippled group to withdraw Rs 2 lakh each per month from one of their bank accounts after intimating the tribunal.

The NCLT has posted the matter for hearing on Friday.

The details of the asset disposals are awaited.

Also read: RBI Directs Banks To Disclose Exposure To IL&FS Separately