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The IL&FS Scandal of 2018 – Unveiling Corporate Governance Failures and Financial Mismanagement

Book Title: Case Chronicles

Editors:  Prof. Dr. Shraddha S. Bhandwalkar, Dr. Deepali S. Ubale and Dr. Shubhada A. Athavale

ISBN:  978-81-980078-8-9

Chapter: 7

DOI: https://doi.org/10.59646/cc7/274

Authors: Ms. Mayuree D. Tawade and Dr. Dnyanesh P. Bandgar

Abstract

The IL&FS scandal of 2018 exposed significant corporate governance failures and financial mismanagement within one of India’s leading infrastructure financing companies. This case study delves into the underlying causes of the crisis, examining how inadequate oversight, weak internal controls, and reckless financial practices led to the company’s collapse. The board of directors and senior management’s failure to enforce accountability and transparency created a breeding ground for fraudulent activities, severely impacting investors, creditors, and employees. Additionally, the case highlights the broader repercussions on India’s financial and infrastructure sectors, prompting regulatory bodies to reassess governance norms and implement stringent reforms. By analysing the IL&FS debacle, this study underscores the critical importance of robust corporate governance frameworks in safeguarding organizational integrity and protecting stakeholder interests. The lessons drawn from this crisis serve as a cautionary tale for companies operating in complex financial environments.

Keywords: Corporate Governance, Management, Scam, Regulatory Bodies, Consequences, Organizational Integrity, Protecting Stakeholder Interests

References

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