Debt-ridden IL&FS group has achieved a significant milestone by repaying ₹50,387 crore to creditors as of June 2026, representing 82.6% of its aggregate debt resolution target of ₹61,000 crore. According to the latest status report affidavit filed before the National Company Law Appellate Tribunal (NCLAT), this represents a 4% increase from the ₹48,463 crore repayment reported in the previous status report filed in September 2025. The group has also discharged ₹50,387 crore to creditors, accounting for more than 83% of the total debt resolution target. This represents a substantial increase from the ₹50,387 crore repayment reported in the previous status report, demonstrating the group's accelerated progress toward complete resolution. The achievement marks a remarkable turnaround for a company that was once buried in financial trouble, with over 83% of what creditors were owed actually being paid out.
The group has paid 88.4% or around ₹57,000 crore of its total debt of ₹91,000 crore (the amount estimated at the time of management takeover) owed to public sector banks and financial institutions. 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. As reported by The Hindu BusinessLine, the group is discharging debts through various methods including asset resolution, interim distribution, and principal servicing in profitable entities. The resolution strategy has proven effective, with the group successfully implementing a mix of approaches including selling assets, transferring projects to InvITs, and distributing cash and InvIT units to achieve this substantial debt clearance. According to the latest affidavit, these efforts have resulted in ₹8,347 crore of additional debt resolution as of June 30, 2026.
In the total ₹50,387 crore debt discharged, ₹26,027 crore has been resolved through monetization, termination, or transfer of assets to InvIT (Infrastructure Investment Trust). Additionally, the group has discharged ₹16,013 crore to external creditors through interim distribution. According to the affidavit filed before NCLAT, pursuant to the NCLAT's order dated May 31, 2022, the total debt discharged towards financial creditors by way of interim distribution aggregated to ₹18,398 crore as of June 30, 2026, out of which ₹16,013 crore has been discharged to external financial creditors. The group is also discharging debt via auto-debits, principal servicing in Green entities (profitable IL&FS entities), and release of non-fund-based limits availed by its subsidiaries. The sale of Chenani Nashri Tunnelway Limited (CNTL) to Cube Highways was completed in November 2025, resulting in the resolution of ₹4,112 crore of debt.
The group maintains a cash balance of ₹7,259 crore, of which ₹1,551 crore is available for interim/final distribution. As reported by The Hindu BusinessLine, the cash held for going concern expenses, contingent and external routed claims is ₹1,925 crore, while the balance cash of ₹3,783 crore is available in remaining entities undergoing resolution. The value of InvIT units held by certain IL&FS Group entities aggregates to ₹326 crore, having been received through transfer of certain InvIT SPVs to the InvIT, including through intra-group distribution. Among key transaction updates, the sale of Chenani Nashri Tunnelway Limited (CNTL) to Cube Highways was completed in November 2025, resulting in the resolution of ₹4,112 crore of debt.
The resolution process has made remarkable progress with 205 of the original 302 entities having completed resolution, while 240 entities have reached an advanced or concluded stage of resolution when including entities whose resolution applications have been filed with or approved by courts. As reported by CNBC TV18, only 41 entities now require continued moratorium protection, compared with the original 302 entities covered under the resolution framework. A total of 128 entities have already been released from the moratorium, indicating the group's successful transition from crisis management to structured resolution completion. The finish line is definitely in sight, with most entities either cleaned up or nearly there, representing a significant achievement for the debt-ridden group.
