When govt takes charge of IL&FS, everybody behaves differently: Ex-director

IL&FS' former director says the board tried various initiatives, but those didn't succeed

The previous board of directors of Infrastructure Leasing & Financial Services Ltd (IL&FS) had attempted several measures to infuse liquidity into the cash-starved entity. The proposals included an initial public offering, rights issue and even a merger with a larger entity to save the infrastructure major from defaulting on its obligations.

According to Jaithirth Rao, a former independent director of IL&FS, the board and the management were aware about the need for capital infusion three and half years ago, and even tried to tap every possible options in hand. But despite all the efforts, the plan fell through for one