The National Company Law Appellate Tribunal (NCLAT) has granted permission to Canara Bank and Indian Bank to take action against former IL&FS directors, with the exception of those who have been part of the new board since October 1, 2018, in order to label them as wilful defaulters. This safeguard also covers professional directors who have been reappointed to the current IL&FS and its subsidiaries’ boards. The banks have been given the green light to file applications to commence proceedings against the mentioned former directors. This decision by NCLAT is a significant development in the ongoing efforts to hold individuals accountable for financial irregularities within IL&FS. It underscores the commitment to ensuring corporate governance and financial transparency in India’s business landscape. The move is expected to have far-reaching implications for corporate governance practices and accountability among directors of Indian companies. Canara Bank and Indian Bank now have the legal backing to pursue action against former IL&FS directors, bringing a new chapter in the saga of the troubled infrastructure financing company.