Case Study: The IL&FS Case Through a Compliance and Governance Lens

A compliance and governance case study of Infrastructure Leasing & Financial Services (IL&FS), the systemically important core investment company whose defaults in September 2018 froze India's short-term credit markets and left more than ₹90,000 crore of group debt in question. This course does not retell the market contagion. It asks the compliance question: how did a group owned by LIC, SBI, ORIX and ADIA, supervised by RBI, audited by large firms and rated AAA, breach its leverage and net owned funds limits for years without anyone forcing a stop? Using the public record from the Grant Thornton forensic audit, SFIO's chargesheets, RBI inspection findings as reported, NFRA's orders on the auditors and SEBI's orders on the rating agencies, you examine a board of nominee directors, a risk management committee that rarely met, evergreening through group entities, related party lending across hundreds of subsidiaries, and supervisory findings that never became enforcement. You then follow the government's supersession of the board under Sections 241 and 242 of the Companies Act, the investigations that followed, and the reforms RBI introduced for NBFCs and core investment companies. The course closes with a governance red flag diagnostic you can run on any listed NBFC using annual reports, exchange filings and Screener.in, and a practical guide to escalation and personal liability for compliance officers. Built for compliance officers at banks and NBFCs, risk and compliance professionals, and aspiring forensic auditors.