Reiterating that "the elephant" had gone amock in the IL&FS case, Srinivas said it was strange that nobody saw it, whether it was statutory auditors, independent directors, credit rating agencies or others.
"There is absolutely no doubt that the management was falsifying their financial position as well as performance with a view to inducing investments from mutual funds, pension funds and the ordinary and gullible investors... The SFIO has already submitted its report on IFIN and the report on ITNL is nearing completion," he said.
As per the financial statements for FY19 finalised by the newly-appointed board, IL&FS reported a staggering standalone net loss of around Rs 22,500 crore.
"Around Rs 20,000 crore of so called intangible assets had to be written off, as they were nothing but falsely projected... The exercise of recasting the financial statements is also going on. Once done, it will make things totally clear," he added.
On the issue of whether the statutory auditors were part of the conspiracy or not, Srinivas said the matter is subjudice.
In terms of recovery in the IL&FS matter, Orix took over the entire debt of around Rs 4,500 crore related to wind mills and gave around Rs 600 crore towards equity consideration.
Education arm's entire loan amounting to around Rs 600 crore is being taken over by the successful bidder and small amount of equity consideration is also being offered. Similarly, in the case of GIFT City, the entire debt of Rs 12,00 crore is being taken over by the Gujarat government with equity value of Rs 32.5 crore for IL&FS, Srinivas said.
For five road assets having combined financial debt of Rs 9,500 crore, bids have been received and are undergoing approval process.
"The Paradeep Refinery Water pipeline and Mangalore SEZ are under negotiation with ONGC. Similarly, the water project in Tamil Nadu is under negotiation with the Government of Tamil Nadu.
"For the Stadium in Kerala the bidding process has been completed and negotiations are underway with the highest bidder. Over 40 plus solvent assets with combined debt of Rs 7,200 crore are servicing all obligations," Srinivas said.
With respect to NHAI projects that remained incomplete due to the concessionaire's fault, it can terminate the contract without any compensation to the contractor.
Following continuous engagement with NHAI, Srinivas said a new framework has been evolved under which NHAI has agreed for an independent audit to assess the amount invested in the project in order to give a fair compensation to the contractor in return of getting unencumbered physical possession of the assets, which can then be rebid.
"This arrangement protects the value. Firstly, it is a public asset, which will now be completed through rebidding. Secondly, the outgoing contractor gets compensated on the basis on amount invested and current valuation of the assets in question. IL&FS would be getting close to Rs 4,000 crore by virtue of this arrangement," he said.
The thermal power plant at Cuddalore, Tamil Nadu, is undergoing debt restructuring. This project is expected to get bids as the 1,200 MW facility is fully operational and the power purchase agreement is also intact.