The government has extended the term of Uday Kotak as non-executive chairman of IL&FS group by another six months.

The extension was done through a gazette notification and it will see Kotak remaining at the helm of the group till April 2, 2022. Kotak is also the managing director and chief executive officer of Kotak Mahindra Bank. The notification was issued by the department of financial services of the ministry of finance dated September 21, 2021.

Last year, the government had extended his term by 12 months till October 2, 2021. The extended six-month term will begin from October 3, 2021. Under the Banking Regulation Act, 1949, a bank cannot be managed by any person who is a director of any other company. The individual can be given a temporary exception for three or nine months.

However, the statute will “not apply to Kotak Bank in so far as it relates to its MD and CEO Uday Kotak being on the board of IL&FS as its non-executive director for a further period up to the April 2, April, 2022”, the notification said.

Kotak was appointed by the Narendra Modi government as the head of the lender’s board in 2018 to help the troubled company come out of difficulties after the state took over the board.

The IL&FS board has discovered that there was a complex web of over 250 companies which were part of the group that has an outstanding of over Rs 94,000 crore to lenders. The board is trying to keep the company as a going concern by focusing on asset sales.

“The IL&FS is privileged to enjoy the continued leadership of Uday Kotak for another six months. I am confident that under his guidance, IL&FS would accomplish the resolution targets set’’, C.S. Rajan, MD, IL&FS, said while commenting on the extension given to Kotak as a non-executive chairman.