IL&FS fallout: From CARE to Icra, here're the lessons for rating agencies

It is time to rethink about their working style, oversight and remuneration

The recently filed chargesheet by the Serious Fraud Investigation Office (SFIO) in the IL&FS case has not directly indicted crediting rating agencies (CRAs) for not raising the red flags well in advance before the eventual financial meltdown of the beleaguered infrastructure lending group. However, this does not let them off the hook.

In its chargesheet, filed last week, the SFIO noted that the top management members of IL&FS “deliberately presented falsified, spruced up, deceptive and misleading” financial statements to the credit rating agencies, who continued to give them the highest ratings till the later part of 2018.

While explaining the