New Delhi, Jun 8 (IANS): IL&FS on Monday said that it has completed the sale of its 50 per cent stake in Gujarat International Finance Tec-City Company Limited (GIFTCL) to the government of Gujarat.

In a statement the crisis-hit lending group said that the sale will reduce its consolidated debt by over Rs 1,230 crore.

IL&FS has received Rs 32.71 crore as equity value for shares as sale consideration, it said.

The sale was completed after the approval of the Principal Bench of the National Company Law Tribunal (NCLT) through its order dated May 22, 2020.

Gujarat Urban Development Company Limited (GUDCL), as the joint venture partner and the holder of the balance 50 per cent in GIFTCL, offered to purchase IL&FS Ltd's share in GIFTCL through exercise of a contemplated right of first refusal under the joint venture agreement.

GIFTCL is a company engaged in the business of real estate development and is currently developing an international financial services city in the Ahmedabad-Gandhinagar region, including design, development, financing, operation and maintenance of the same.

This development gains significance as it plays a major role in the overall resolution for the IL&FS Group. As part of the overall resolution plan to address a significant portion of the group's debt, the sale of a number of other group assets are currently in various stages of progress.