Former financial services secretary Nagaraju named IL&FS CMD for two years

New Delhi: Former financial services secretary M. Nagaraju has been named as chairman and managing director of Infrastructure Leasing and Financial Services Ltd, bringing a veteran policymaker to manage the final stages of the debt-laden group's clean-up.

The ministry of corporate affairs designated Nagaraju to lead IL&FS for two years, according to an order issued on Monday. He succeeds Nand Kishore, whose tenure ended on 30 September.

Nagaraju retired in May as secretary of the department of financial services, where he oversaw policy related to banks, insurers, pensions and financial inclusion. He previously held senior positions in the coal ministry and the department of economic affairs and also served at the World Bank.

His appointment comes as IL&FS advances one of the country’s largest corporate resolution efforts. As of 30 June, the group said it had resolved more than 94% of its targeted value and discharged over ₹50,000 crore of debt since the infrastructure financier's 2018 collapse triggered concerns about wider financial sector contagion.

Nagaraju will receive a monthly remuneration of ₹5.5 lakh, along with a company car and company-leased accommodation.

The order said Nagaraju had been appointed a director on the IL&FS board through an order dated 1 October 2026 issued by the Mumbai bench of the National Company Law Tribunal (NCLT).

"Shri Nagaraju Maddirala, who has been appointed as a director on the board of IL&FS vide order dated 1.10.2026 of the Hon'ble NCLT, Mumbai bench, is designated 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 IL&FS to complete the formalities to give effect to the appointment. The order, issued with the approval of the competent authority, makes clear that Nagaraju's two-year tenure will commence from the date of his joining.

IL&FS resolution enters final phase

Nagaraju brings more than three decades of administrative and policymaking 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 finance ministry on 31 May 2026. He assumed charge of the department in August 2024, overseeing policy matters related to banking, insurance, pensions, and financial inclusion.

Before heading DFS, Nagaraju served as an additional secretary and joint secretary in the ministry of coal between 2020 and 2024. During this period, he was involved in reforms aimed at opening the coal sector to private commercial mining and overseeing auctions of more than 115 coal mines, according to his professional profile.

At the state level, Nagaraju held several senior administrative positions in Tripura, including principal 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.

The IL&FS crisis erupted in 2018 after the infrastructure financing conglomerate defaulted on debt obligations, triggering concerns over liquidity and contagion risks 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's resolution update for 30 June 2026, IL&FS had discharged ₹50,387 crore of debt, equivalent to approximately 83% of its estimated ₹61,000-crore resolution target. The overall resolution value, including cash and infrastructure investment trust units held within the group, stood at ₹57,556 crore, representing more than 94% of the target.

The group had completed the resolution of 205 of its original 302 entities, while another 35 were at advanced stages of resolution.

About the Author

Harsh Kumar is a policy reporter at Mint (HT Media Group), where he covers the Ministry of Commerce and Industry along with key departments of the Ministry of Finance, including the Department of Economic Affairs (DEA) and the Department of Financial Services (DFS). With over five years of experience in business and economic journalism, he has developed strong expertise in tracking policy developments and their wider economic impact.<br><br>He has previously worked with Business Standard, Moneycontrol, and Outlook Money, where he reported extensively on banking, financial services, and the broader economy. Over the years, he has built a reputation for delivering accurate, insightful, and impactful stories, supported by a keen eye for detail and a consistent track record of breaking exclusive news.<br><br>An alumnus of Jamia Millia Islamia, Harsh closely follows regulatory changes and key economic trends shaping India’s financial and industrial landscape. His reporting aims to simplify complex policy issues for a wider audience while maintaining depth and credibility.<br><br>Outside of work, he enjoys tracking policy developments, finding scoops, and travelling, reflecting his curiosity about how economic decisions shape everyday life.