Infrastructure Leasing & Financial Services

About Us

Founded in 1987, IL&FS began as a core investment company focused on infrastructure development and financing in India. It expanded into a major conglomerate with numerous subsidiaries, operating across sectors like roads, power, water, and urban infrastructure. IL&FS aimed to bridge India's infrastructure gap through innovative financing and project development expertise, encompassing project conceptualization, financing, construction, and operation. However, financial mismanagement and excessive debt led to defaults on debt obligations in 2018, triggering a systemic crisis within the Indian financial sector. Consequently, the Indian government intervened, assuming management control and initiating a restructuring process to address the company's financial difficulties. This intervention sought to stabilize the financial system and recover outstanding debts. The default event highlighted vulnerabilities in infrastructure financing models and corporate governance practices. The restructuring efforts involve asset sales, debt resolution, and legal proceedings to recover funds and ensure fair treatment of creditors. The IL&FS crisis prompted regulatory reforms to strengthen oversight of non-banking financial companies (NBFCs) and prevent similar incidents in the future. The ongoing resolution process is complex and involves multiple stakeholders, including government agencies, creditors, and investors. The case serves as a crucial lesson in risk management and the importance of sustainable financing practices in infrastructure development. The government's intervention aimed to minimize the impact on the broader economy and restore confidence in the financial markets.