The DND Flyway Order Impact on IL&FS and Shareholders

The Supreme Court's DND Flyway order has dealt a significant blow to shareholders, led by IL&FS, who were anticipating a substantial income of up to Rs 2000 crore from the sale of the company. This expectation was based on the toll revenue and development rights sought by Noida Toll Bridge Company. Lenders are also expected to be affected, with their exposure now estimated to be in the range of Rs 50-60 crore.

Despite the lack of major players in the bidding process, several small companies showed interest in acquiring the company, which had once established a landmark project improving connectivity between Delhi and Noida. IL&FS, in its troubled financial state, had projected revenues between Rs 200 crore and Rs 500 crore from the sale to alleviate its financial burden on banks.

Noida Toll Bridge Company expressed concern over the judgment, stating that it could serve as a guide for developers in ongoing and future infrastructure projects under the PPP model. They emphasized the need for reassessment of project risks in light of this judgment.