The dispute between New Tirupur Area Development Corporation Limited (NTADCL) and its shareholder Infrastructure Leasing & Financial Services Ltd. (IL&FS) over debt repayment has now reached the doorstep of the Registrar of Companies (RoC), Coimbatore.
The NTADCL management has written to the RoC alleging conflict of interest over participation of IL&FS’s nominee directors in board meetings with an agenda related to disbursement of IL&FS’s senior loan. However, the IL&FS has denied the charge.
In 1995, the NTADCL was incorporated as a special purpose vehicle and public utility to improve potable water and sewerage infrastructure in Tiruppur through an integrated water supply and sewerage project. In 2000, the Tamil Nadu Water Investment Company Ltd. (TWIC) was formed to route all investments into the NTADCL. The Tamil Nadu government owns a 46% stake in the TWIC and the IL&FS, 54%. The TWIC holds a 28.72% stake in the NTADCL. Overall, the State government owns a 38.32% stake in the NTADCL, and the IL&FS, 25.88%.
