Former Financial Services Secretary Nagaraju appointed IL&FS CMD for two years

New Delhi: Former financial services secretary M Nagaraju has been appointed chairman and managing director of Infrastructure Leasing and Financial Services Ltd, bringing in the seasoned policymaker to steer the final stages of cleaning up the debt-laden group.

The corporate affairs ministry has appointed Nagaraja to head IL&FS for two years, according to an order issued on Monday. He replaces Nand Kishore, whose tenure ended on September 30.

Nagaraju retired in May as Secretary, Department of Financial Services, where he oversaw policies related to banks, insurance companies, pensions and financial inclusion. He previously held senior positions at the Ministry of Coal and the Ministry of Economic Affairs and also worked at the World Bank.

His appointment comes as IL&FS is advancing one of the largest enterprise solutions in the country. As of June 30, the group said it had resolved more than 94% of its target value and launched ₹The $50,000 million in debt since the collapse of the infrastructure financier in 2018 has raised fears of wider financial sector contagion.

Read also | The Ministry of Finance has flagged the slow processing of bank loans in the rooftop solar system

Nagaraju will receive a monthly remuneration of Rs ₹5.5 lakh, along with a company car and accommodation rented by the company.

The order stated that Nagaraju was appointed as a director on the board of IL&FS through an order dated October 1, 2026 passed by the National Company Law Tribunal (NCLT) Mumbai court.

“Shri Nagaraju Maddirala, who was appointed as a Director on the Board of IL&FS vide order dated 1.10.2026 of the Hon’ble NCLT, Mumbai bench, is appointed as the Chairman and Managing Director of IL&FS for a period of 2 years from the date of his joining,” the MCA order said.

The ministry has asked the IL&FS to complete the formalities to make the appointment effective. This is clear from the order issued with the approval of the competent authority Nagaraju’s two-year tenure begins on the day he takes office.

The IL&FS solution is entering its final phase

Nagaraju brings over three decades of governance and policy experience across financial services, infrastructure, public administration and international economic relations. He retired as Secretary of the Department of Financial Services (DFS) under the Union of the Ministry of Finance on 31 May 2026. In August 2024, he took over the department and oversaw policy matters relating to banking, insurance, pensions and financial inclusion.

Prior to heading DFS, Nagaraju served as Additional Secretary and Joint Secretary in the Ministry of Coal from 2020 to 2024. During this period, he was involved in reforms aimed at opening up the coal sector to private commercial mining and oversaw the auction of over 115 coal mines, according to his professional profile.

At the state level, Nagaraju held several senior administrative posts in Tripura, including Chief Secretary and Secretary in departments covering Finance, Industries and Commerce, Health and Family Welfare, Women and Child Development and Tribal Welfare. He also served as a district magistrate.

Read also | Finance Ministry to review financial inclusion schemes with PSU bank chiefs

The IL&FS crisis erupted in 2018 after the infrastructure finance conglomerate defaulted on debt obligations, raising liquidity concerns and the risk of contagion across India’s non-banking financial sector.

The government subsequently replaced the company’s board in October 2018 and installed a new management team to oversee the resolution of the group’s debt and assets.

According to the group resolution update dated 30 June 2026, IL&FS was dismissed ₹50,387 crore of debt, which is around 83% of its estimate ₹Resolution target of 61,000 million crowns. The total value of the solution, including cash and infrastructure investment trusts held within the group, remained flat ₹57,556 crore, which is more than 94% of the target.

The group has completed resolution of 205 of its original 302 entities, with a further 35 in an advanced stage of resolution.

Read also | A strong, prosperous India good for the world, says US economist Michael Greenstone