Letter to BS: Role of independent directors in IL&FS mess should be probed

The Ministry of Corporate Affairs has done the right thing in sending the accounting books of Infrastructure Leasing & Financial Services to the National Financial Reporting Authority suspecting accounting irregularities. Similarly, the Institute of Chartered Accountants of India has issued a show cause notice to the statutory auditors of the company. The way the credit ratings of the company were steeply downgraded in matter of a few days should prompt calling for the detailed explanation of the credit-rating agencies. The Company Law Board and the Reserve Bank of India (RBI) should closely probe the role of the erstwhile independent directors (IDs) and the nominee directors (LIC and major investors) to see whether there was any negligence or malfeasance on their part while discharging their duties.

Arun Pasricha, New Delhi

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