Corporate India's Dirty Secret

A forensic audit of 200 top companies by the Ministry of Corporate Affairs has detected irregularities to the tune of Rs 1 lakh crore, including diversion of funds. Most of these companies have been referred to insolvency and resolution proceedings under the Insolvency and Bankruptcy Code. Irregularities detected in some top companies point to the collapse of corporate governance structures leading to liquidity stress in these entities. In plain terms, companies’ boards have allowed irregularities to happen knowingly while businesses suffered, investors lost money and bank loans remained unpaid. Read more