Infrastructure Leasing & Financial Services (IL&FS), which has defaulted on a series of interest payments, needs to resolve issues on its own, Economic Affairs Secretary Subhash Chandra Garg said.

“IL&FS is independent of Government. It has independent board and shareholders. So, IL&FS needs to resolve its issues on its own and I think it is capable of doing it,” Garg said in an interview.

Although Government has no holding in the company, some of the state-owned financial firms including LIC and SBI are shareholders of the non-banking financial company (NBFC).

“It has assets, it has liabilities to take care. There might be some temporary mismatch, so it is IL&FS, which will deal with the problem. The Government is not involved directly,” Garg said.

Earlier this month, IL&FS Group defaulted on inter-corporate deposits and commercial papers.

On September 4, it came to light that IL&FS had defaulted on a short-term loan of Rs 1,000 crore from Sidbi, while a subsidiary has also defaulted on Rs 500 crore dues to the development financial institution, which reportedly forced Sidbi to ask its chief general manager in charge of the risk management department to resign.

State-owned LIC is the largest shareholder with a fourth of the firm’s equity, while Orix Corporation of Japan owns 23.5 per cent.

Other shareholders include Abu Dhabi Investment Authority with 12.5 per cent stake, IL&FS Employees Welfare Trust with 12 per cent, HDFC with 9.02 per cent, Central Bank of India with 7.67 per cent and State Bank of India (SBI) with 6.42 per cent at the March-end 2018.

In a letter to its employees, IL&FS had claimed that if funds worth Rs 16,000 crore stuck with concession authorities were released on time, it would not have landed in this mess.