India ordered an investigation on Thursday into alleged mismanagement of funds at Jet Airways , which halted operations in April after running out of cash, Reuters reported. The Ministry of Corporate Affairs has ordered India’s Serious Fraud Investigation Office (SFIO) to carry out the investigation, a government order seen by Reuters showed. The order refers to alleged siphoning of funds and unspecified financial irregularities at Jet Airways, which was once India’s largest private airline, but did not include details on the allegations or name any individuals.

India’s state-owned banks had classified 1.50 trillion rupees ($21.76 billion) worth of loans as “wilful defaults” in 2018-19, with the biggest lender State Bank of India accounting for nearly a third, the finance minister said in the parliament, Reuters reported. Under Indian law, wilful defaulters are classified as firms or individuals who own large businesses and deliberately avoid repayments.

Moody’s Investors Service’s India unit has put its chief on leave amid a probe into a controversial rating decision, in the latest sign of trouble in the nation’s credit evaluation industry, Bloomberg News reported. ICRA Ltd.’s board has decided to place Chief Executive Officer Naresh Takkar on leave, the company said in an exchange filing Monday evening. The rater is examining concerns raised in a whistle-blower complaint, sent to it by the regulator, that its executives interfered to guarantee top ratings for a financier that plunged to default just two months later.

The Indian government is considering giving more powers to the central bank to regulate the struggling shadow banking sector, Finance Minister Nirmala Sitharaman informed the Parliament on Monday, the International New York Times reported on a Reuters story. The government does not have any plans to infuse funds in privately-held shadow banks, she said in a written reply. "Government has received a proposal from RBI to strengthen RBI's regulatory and supervisory powers under the Reserve Bank of India Act, 1934, and the same is under consideration," Sitharaman said.

One of India’s top microlenders is seeking about 60 billion rupees ($900 million) from banks and non-bank lenders to fund loan growth as demand from borrowers living in small towns and rural areas bucks the slump in the nation’s overall credit offtake, Bloomberg News reported. Satin Creditcare Network Ltd., whose assets exceed 70 billion rupees, needs the cash to meet its credit-growth target of about 40% for the year ending March, Chairman H. P. Singh said by phone.

Indian shadow banks’ woes are worsening by the day with investors now demanding the highest premium in six years to hold their short-term debt. Spreads on top-rated one-year bonds of Indian non-bank lenders over government bonds of the same maturity have risen 63 basis points since India’s mini-Lehman moment when the systemically important Infrastructure Leasing & Financial Services Ltd. was cut to default in September, Bloomberg News reported. This is the widest level since 2013, according to data compiled by Bloomberg. Trouble has only spread across the sector in recent months.

A travel planner in India backed by the world’s second-largest asset manager Vanguard Group has defaulted on debt and its shares fell to a record low, as cracks in the nation’s credit market spread, Bloomberg News reported. Cox and Kings Ltd. has paid only 500 million rupees ($73 million) of the two billion rupees due June 26 on unsecured commercial papers, according to an exchange filing late Thursday evening. Shares of the company dropped by their daily limit of 10% on Friday, the lowest since its trading debut in 2009.

Lenders to Suzlon Energy Ltd. find themselves back where they started about six years ago, Bloomberg Quint reported. The renewable energy firm, which had restructured debt under the Corporate Debt Restructuring programme in 2013, is once again in financial trouble. This time, though, lenders are not keen to restructure the company’s debt and see equity infusion from an outside investor as the only feasible option. The company owes banks about Rs 10,000 crore.

India clarified on Thursday that plans to sell debt-laden state-run carrier Air India were still on track, hours after a junior minister told parliament the privatisation was on hold because of high oil prices and volatile exchange rates, the International New York Times reported on a Reuters story. India failed last year in its attempt to sell a 76% stake in loss-making Air India due to a lack of interest from bidders, but said it would return with an alternative proposal soon.

India’s market regulator prohibited mutual funds not to sign pacts with stressed companies that delay margin calls, because such deals hurt investors, Bloomberg News reported. The Securities & Exchange Board of India’s ban comes after companies such as Essel Group reached so-called standstill agreements with money managers. Under such deals, fund managers agree not to sell shares pledged by the founders as collateral for loans even if the stock tumbles.