IL&FS Group Repays Rs 50,387 Cr Debt by June 2026, Achieves 82.6% of Resolution Target

New Delhi: Debt-ridden IL&FS group has repaid Rs 50,387 crore to its creditors as of June 2026, according to the latest status report affidavit filed before insolvency appellate tribunal NCLAT.

This is around 4 per cent higher than Rs 48,463 crore repayment by IL&FS as per the last status report filed in September 2025.

With the repayment of Rs 50,387 crore, the overall debt resolution of the IL&FS group has reached nearly 82.6 per cent of its target of Rs 61,000, which is approximately 61.38 per cent of the total external debt outstanding of Rs 99,377 crore.

However, it has paid 88.4 per cent — around Rs 57,000 crore of its total debt of Rs 91,000 crore (the amount which was estimated at the time of the management takeover) — owed to public sector banks and financial institutions.

Additionally, a significant portion of the company’s equity capital is held by public financial institutions, including the Life Insurance Corporation of India (LIC), State Bank of India (SBI), and Central Bank of India, among others.

IL&FS is paring the debts through asset resolution, interim distribution which includes cash & InviT Units, among others.

In the total Rs 50,387 crore, as on June 30, 2026, the debt resolved through such monetisation/ termination/ transfer of assets to InvIT aggregates to Rs 26,027 crore.

It is also discharging debts via auto-debits, principal servicing in Green entities (profitable IL&FS entities) and release of non-fund-based limits availed by its subsidiaries.

“These efforts (along with discharge of fund-based debt) have resulted in debt resolution of approximately Rs 8,347 crore as on June 30, 2026,” IL&FS Group said in the affidavit.

Moreover, IL&FS has also paid Rs 16,013 crore to external creditors through interim distribution.

“Pursuant to the NCLAT’s order dated May 31, 2022, and other/further associated order(s), as on June 30, 2026, the total debt discharged towards financial creditors by way of interim distribution aggregated to Rs 18,398 crore out of which Rs 16,013 crore has been discharged to external financial creditors,” IL&FS informed.

Besides, IL&FS group has a cash balance “aggregate to Rs 7,259 crore of which cash available for interim/ final distribution is Rs 1,551 crore”.

In this the cash held for going concern expenses, contingent and external routed claims is Rs 1,925 crore and the balance cash of Rs 3,783 crore is available in the remaining entities undergoing resolution Moreover, the value of the InvIT units held by certain IL&FS Group entities aggregates to Rs 326 crore.

“Such units have been received by the relevant Respondent No. 1 Group entities pursuant to the transfer of certain InvIT SPVs to the InvIT, including through intra-group distribution,” it said.

At the time of crisis, IL&FS Group comprised 302 entities as of October 15, 2018 in which 169 entities were Domestic Group Entities, and the remaining 133 entities were Offshore Group Entities.

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