Corporate Governance Failure In Il&Fs: A Critical Legal Analysis
- IJLLR Journal
- Apr 24
- 1 min read
Pohor Jamatia, The ICFAI University, Dehradun
ABSTRACT
This paper explores the origins of the Infrastructure Leasing & Financial Services (IL&FS) crisis which threatened to become a domestic credit crisis by its mere size and extent had it not been for the timely intervention by the government. The collapse of Infrastructure Leasing & Financial Services (IL&FS) in 2018 shook the foundations of India’s financial system. Once considered a trusted infrastructure financing giant, its sudden downfall exposed deep-rooted issues in corporate governance, regulatory oversight, and financial management. This article critically examines the causes behind the crisis, focusing on governance failures, weak regulatory mechanisms, and systemic risks. It also evaluates the legal framework and governmental response, highlighting lessons for strengthening transparency, accountability, and financial discipline in India’s corporate sector.
Keywords: IL&FS, Corporate governance, Financial crisis, Regulatory failure, Legal accountability
