NCLAT Approves Rajasthan Government’s Acquisition of IL&FS Stake

The National Company Law Appellate Tribunal (NCLAT) has approved the transfer of a 50% stake in Saurya Urja Company of Rajasthan Ltd (SUCRL) from IL&FS Energy Development Company Ltd (IEDCL) to the Rajasthan Government. This acquisition is valued at approximately ₹85 crore. The decision concludes a lengthy legal process, allowing the state to enhance its involvement in renewable energy projects previously linked to IL&FS.

In its ruling, the NCLAT emphasized that IL&FS had already presented the option for the Rajasthan Government to acquire the stake, a proposal that was formally accepted. IEDCL has been involved in multiple renewable energy initiatives under the broader IL&FS umbrella, many of which have faced challenges following the company’s financial collapse in 2018.

Legal Framework and Financial Implications

The tribunal clarified that all claims from creditors associated with SUCRL will continue to be managed under IL&FS’s approved resolution plan. This assurance indicates that the transition of ownership will not disrupt the established repayment structure or the priority of lenders. This stipulation is crucial, as it maintains the integrity of the financial arrangements in place, which affect a wide range of stakeholders.

According to an affidavit submitted by the Rajasthan Government, the acquisition was formalized through a consent order dated November 3, 2025. The document also noted that the valuation of ₹85.11 crore was recognized as the highest bid for the asset, reinforcing the government’s commitment to the transaction. The NCLAT concluded that no further orders were necessary, thereby disposing of any pending applications related to the matter.

The acquisition underscores the Rajasthan Government’s strategic intent to take greater control of energy projects that have been ensnared in the larger IL&FS insolvency issues. By securing this stake, the government ensures that critical clean-energy assets remain operational and can be governed effectively without interference from creditor disputes. This move is expected to bolster the state’s renewable energy initiatives, contributing to a more stable energy landscape.

Overall, the NCLAT’s ruling marks a significant development in the ongoing efforts to resolve the complex financial issues stemming from IL&FS’s collapse, paving the way for renewed investment and growth in renewable energy within Rajasthan.