IL&FS Transportation (ITNL)
secured USD 50mn from Export
Refining debt and
First Indian company
to raise this type of
loan from overseas
costs are borne by
11. Unable to
of India on
the basis of
of Rs. 382
20. Improper utilization of
company’s resources by
• High paid top
Shadow Bank so less
because company is not
directly taking deposits
from the public.
• Risk management not
Cost escalation due to
• Problems in land
21. Started finding lapses in the regulating
RBI conducted forensic audit into IL&FS
Serious Fraud Investigation Office filed
charge sheet as per suggested by RBI
Corporate governance lacked in the
RBI reported improper calculation of Net
owned funds for year 2015 onwards.
22. Asked other commercial banks to disclose the
outstanding's and Non-Performing Assets of the
IL&FS on 24th April, 2019
The central bank could invoke Section 45 of the
RBI Act, 1934, against the wholly-owned
subsidiary of infrastructure lender IL&FS.
RBI issues a show-cause notice to IL&FS.
•Fraudulent transactions were taken up to
bypass the RBI directions on group lending.
Auditors have resigned on 15th July, 2019
24. Fall of NIFTY, SENSEX indices
Fear of liquidity.
60% fall of share price of DHFL.
Credit rating agency’s CEO sent on leaves
L&T and Bajaj Finance share price fall 14% to 16% .
Trust on Credit rating agency are under scanner.
25. •Mutual fund
invested in debt
instrument will get
• Mutual funds units
started selling out.
• Down in credit rating of
26. Self Governance should be removed
Liquidate the non performing subsidies
Resolve land acquisition issues with the help of Govt
Similar type of company should monitor by RBI
27. Risk Assessment at regular Interval
Whistle Blowing strategy should adopt
RBI must have right to appoint Auditors
Concurrent Audit’s must be done effectively & efficiently