IL&FS focuses on infrastructural project, but it operates at least 24 direct subsidiaries, 135 indirect subsidiaries, six Joint Ventures(JV) and four associate companies. The institutional shareholders of IL&FS includes SBI, LIC, ORIX Corporation of Japan and Abu Dhabi Investment Authority (ADIA). After IL&FS defaulted in September 2018, a state of panic happened in the market as mast of the fund houses have invested in IL&FS instruments. As a result this event triggered a cash crunch in the market. This brought IL&FS management in to limelight and thus instigated a suspicion which led to sack of 15 members of IL&FS on October, 2018.

The bad days for IL&FS didn’t end here but created a more hype with audit. As the IL&FS group of companies has a debt of Rs. 94,000 crore, the new-board conducted audit from Grant Thornton. According to the finding of the audit, 14 former directors has been charged in facilitating money laundering, violating loan sanctioning rules and causing “huge financial stress and losses” to the company.

The audit found that there were several instances where the committee of directors of IL&FS approved loans at a negative spread to borrowers, that were facing liquidity crunch. The more shocking revelation is that the quantum of such loans is near to ?4,300 crore. The 14 directors are now suppose to give explanation on the same to the new-board of members.