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Indian lender's web of debts caused crisis, IL&FS board says

One subsidiary ran on inadequate capital for 3 years

India's Chenani-Nashri tunnel, seen here being built, is the country's longest road tunnel and was financed in part by infrastructure lender IF&LS.    © Reuters

MUMBAI -- A string of governance problems have been revealed at a stricken India infrastructure lender that New Delhi is battling to save to prevent wider damage to the financial sector.

A new government-appointed board of IL&FS on Wednesday said it had discovered a complex web of borrowings within the group, a lack of financial controls and inadequate legal separations between subsidiares.

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