Top investigators need to check corporate fraud
The recent case of loan default involving IL&FS has roiled the Indian economy and the stock markets over the last few weeks. It has dented the faith of investors not only in the group but in infrastructure finance and NBFCs. The government did take prompt decisive action by setting up a committee of senior corporate leaders, bureaucrats and political leaders to understand the issue and resolve it but it will be sometime before the committee members identify the causes and reasons for the default and deliberate on ways to resolve them.