IL And FS Financial Scandal
- IJLLR Journal
- Dec 25, 2025
- 1 min read
Rimjhim, Symbiosis Law School, Nagpur
ABSTRACT
IL&FS scam, is one of the most famous and biggest financial scandals of India, exposed the = deficiencies deep-rooted in corporate governance, financial regulation, and regulatory frameworks in the non-banking finance industry. IL&FS, a well famous infrastructure development and financing company, at the stage of going into bankruptcy, due to defective business model of funding long-term infra projects through short-term borrowings. The Infrastructure Leasing & Financial Services, Financial crisis began in 2018 when it had defaulted on its massive debt liabilities, plunging financial markets into turmoil and exposing weaknesses in India's shadow banking system. With the help of this case study will try to understand the history and organizational intricacies of IL&FS, why it collapsed, and the consequential effect on the finance industry. It also analyses the regime of regulation that applies to NBFCs in India, such as the Insolvency and Bankruptcy Code, RBI regulation, the Companies Act and SEBI regulation. Lastly, the paper discusses the possibilities to improve corporate governance, enhance the regulatory firewall, and foster resilience.
