ILFS fraud was the largest corporate fraud in India and triggered a slowdown in the economy. Elucidate the statement covering how fraud was perpetuated in this case.

ILFS fraud was the largest corporate fraud in India and triggered a slowdown in the economy, as the company was a key vehicle for infrastructure development of the country. Fraud occurred in spite of marquee shareholders like LIC, SBI etc. being the largest shareholders, having representatives on board. ILFS had the largest debt exposure of around ₹91,000 crores (including ₹20,000 crores invested by PF and pension funds). Fraud was perpetuated mainly by: Diversion of borrowed funds to related entities of some of members of top management team; Imprudent lending to parties who were not credit worthy for ulterior motives; Evergreening of loans by routing money from one group company to another through an unrelated party; Over invoicing of project costs by vendors, accounting of fake expenses etc. and difference being routed back to related entities of some of members of top management team; Overstatement of profits by non-provisioning of loans, accounting of fake expense, inappropriate recognition of project revenue etc.; The company had unprecedented number of subsidiaries and group companies, (346) which were used to route above transactions; Non-disclosure of some of these companies as related parties; Non-disclosure some of subsidiaries, associates, joint ventures. Most of the mutual funds, insurance companies and PF gratuity funds had invested large sums in its debt issuance, due to the high credit rating of the company. It was a case of negligence by reputed credit rating agencies that rating was not downgraded in spite of clear signs of financial stress in the company. Rating was downgraded abruptly to lowest level from the highest only after the company defaulted in its repayment obligations. Surprisingly, this public interest entity, was run for years by the same top management team, who were treating ILFS as personal property. Their subordinates and even Board were so overawed by their overpowering persona that no one dared to challenge their decisions. Fraud was going on for years, but could not be detected till the damage was done. Like Satyam, the government suspended the board and appointed eminent experts to the board chaired by reputed and seasoned banker, Mr. Uday Kotak. Currently the company is under resolution process and some of its infrastructure has been sold.