India has seen many financial scams, but none that can match the scope, size and magnitude of shadow bank Infrastructure Leasing & Financial Services Limited (IL&FS). Like an onion, the more one peels the more the tears and pungence.
The top secret Ministry of Corporate Affairs withering summary of the construct of IFIN (IL&FS Financial Services) and the tell all of corporate shenanigans that emerges from the audit of lending by Deloitte and Haskins and Sells (DHS) for the last 10 years is a shocking tale of opportunism, ever greening and window dressing by the management.
A systemic malaise governed the way business was conducted, aided and abetted as it was its auditors who were involved in the cover up. Corporate governance, ethics, transparency, best of breed practices and all other fail-safe measures took a back seat as the management made hay, compromising all the functions with ease.
The engagement team and engagement partners of DHS had the awareness of the company’s modus operandi of funding the defaulting borrowers for payment of interest and principal in a fraudulent manner by the management again and again to window dress the asset book of the company for several years. The auditor was thereby complicit in nature with the management.
The investigation team found a document in the email server of IL&FS prepared by the DHS Engagement team identifying the funding of borrowers for paying principal and interest.
The said email was sent by Rakesh Jain, Senior Manager, DHS, to Payal Rathod, Assistant Manager, DHS, on May 9, 2018 at 10.24 a.m. The said email contained excel files namely “Non Group Evergreening cases 25042018.xlsx”. (IANS)