The dubious and highly contentious role played by independent directors in IL&FS has been thrown into stark relief by the latest SFIO charge sheet in the matter. IANS had also highlighted this last week.
The SFIO recommended that prosecution be sanctioned against directors and independent directors of the company on account of collective responsibility of the board – Shahzad Dalal, S.S. Kohli, Manu Kochhar, Renu Challa, Uday Ved, Neera Sagi and CFO Deepak Pareek – since the board was aware of irregularities.
Prosecution is recommended under Section 447 of Companies Act, 2013 and Section 417 and 420 read with Section 120B of the Indian Penal Code.
When this bubble burst, the board failed to see it as an inexorable event and like King Canute, could not reverse the incoming tide which brought the IL&FS ‘sand castle’ crashing down.
