InvestorQ : What is IL&FS Crisis?
Archita Jajjoo made post

What is IL&FS Crisis?

Shreya Karn answered.
3 years ago
Infrastructure Leasing & Finance Services IL&FS Ltd. is an investment company has Institutional shareholders like SBI, LIC, ORIX Corporation of Japan and Abu Dhabi Investment Authority (ADIA). The crisis started with IL&FS defaulting in repayment to its lenders which led ICRA-a credit rating agency to downgrade the rating. IF a huge, reputed and renowned company like IL&FS defaulting, the repercussions can be severe. This will create a ripple effect in the economy as SBI and LIC is a stake and might have a Contagion effect. A regulatory intervention from the regulator and the government is only which can handle this panic situation.

Purvesh answered.
2 years ago

There is news for raids at various offices of the company. The ED(Enforcement Directorate) has issued a case against the former chairman of the company, Ravi Parthasarathy. ED has accused the chairman with the case of Prevention of Money laundering Act(PMLA).

The case has been reported as there was misconduct of income reporting, loans, issues with Key employees. The company has a debt of around Rs.90K as per previous reports.