Reflection on governance issues in IL&FS and L&T

A solution to motivational issues is yet to be found out. Therefore, the use of the stick is the only solution

Over the past few months, a spate of events occurred in the space of corporate governance presenting challenges in improving corporate governance and ethical standards being practised by companies. Those are worrying, but no solution is in sight. 

As per media reports, the government-appointed board has charged 14 former directors of group firm IL&FS Financial Services Ltd (IFIN) with facilitating money laundering, sanctioning loans in violation of rules and causing "huge financial stress and losses’’ to the company. Those serious allegations are based on the special audit report submitted by Grant Thornton. It reported numerous financial irregularities in deals with financial