IL&FS new board moves to clean up debt mess, introduces austerity measures

Since taking over the company, the new board has appointed members to the boards of eight key IL&FS companies

The new Infrastructure Leasing & Financial Services (IL&FS) board is discovering several challenges and complexities as it finds new information on the flawed governance practices at the infrastructure financier. 

For the newly reconstituted board of directors of IL&FS, headed by Uday Kotak, chairman and managing director of Kotak Mahindra Bank, the challenging task of turning around the company keeps getting taller. 

For instance, the new board believes that large parts of the IL&FS group operated independently with no boundaries of legal entities and separate managements. 

“The new board is unable to validate whether due processes and transparency have been followed