Uday Kotak is stepping down from his position as non-executive chairman of IL&FS three-and-a-half years after the government and regulators asked him to steer the infrastructure financing giant out of a colossal mess.

Kotak, who has often been asked to play the role of a trouble shooter in badly managed companies, is leaving with more than half the job done.

In a statement issued on Tuesday, IL&FS said the government-appointed board led by Kotak had resolved debt worth over Rs 55,000 crore out of a total outstanding amount of Rs 99,000 crore.

Kotak is set to step down on April 2. The Union government has appointed C.S. Rajan as chairman and managing director of IL&FS and he will take charge for a period of six months from April 3.

The board announced that IL&FS has also sold its headquarters at Mumbai’s Bandra Kurla Complex (BKC) to the Canadian investment firm Brookfield for a sum of Rs 1,080 crore.

While the IL&FS group occupies the top three floors of the building, sources said that they will now be a tenant.

The duration of the tenancy agreement could not be ascertained. The building will be handed over to Brookfield in this calendar year.

IL&FS said that it has addressed debt of Rs 55,000 crore till date, up from Rs 52,200 crore as of November 2021. The group retained its overall resolution estimate at Rs 61,000 crore, representing 62 per cent of overall -fund based and non-fund based debt.

The incremental resolution of over Rs 2,700 crore since November 2021 comprises the Rs 1,080 crore from sale of the IL&FS headquarters, Rs 900 crore under Khed Sinnar claim settlement with NHAI, Rs 230 crore from settlement of IFIN’s non-performing loan accounts and Rs 520 crore from other recoveries.