Gateway Distriparks distances itself from IL&FS

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Gateway Distriparks Ltd, Mumbai-based logistics company, distanced itself from bankrupt lender Infrastructure Leasing and Financial Services Limited (IL&FS) and IL&FS Financial Services Ltd (IFIN).

Responding to media reports, the company said there are no transactions between itself or its subsidiaries with IL&FS or IL&FS Financial Services.

However, it said there is a transaction between Prism, a company controlled by Gateway Distriparks’ promoter Prem Kishan Gupta, and IL&FS Financial Services.

Prism, a registered NBFC, has borrowed money from IL&FS Financial Services by pledging the shares that Prism holds in Gateway Distriparks.

However, Prism has not lent any money to or invested in IL&FS and IL&FS Financial Services Ltd. Gateway Distriparks also clarified that it has not given any loan to Prism, its promoter’s company.

Gateway Distriparks also said there are no such transactions between any of Gateway Distriparks’ entities or Gateway Distriparks itself with IL&FS and IL&FS Financial Services Ltd.

The company’s clarification comes a day after media reports alleged that it had given Rs 100 crore loan to Prism International Private Ltd.

Earlier on Tuesday, media reports stated that IL&FS has issued a show-cause notice to 14 former board directors of IL&FS Financial Services Limited (IFIN) alleging that these directors “facilitated money laundering” and sanctioned loans without any security. It also accused them of “conspiracy and getting unlawful gains”.

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