[1] It has been established by the Government of the National Capital Territory (NCT) of Delhi as an autonomous Institute, under the Societies Registration Act, 1860, at New Delhi[2] with Shiv Kumar Sarin as its founding director.

It was created by the Government of Delhi to make it a dedicated international center of excellence for the diagnosis and management of liver and biliary diseases and to provide advanced training and research in the field of Hepato-biliary Sciences.

The formal inauguration of the hospital took place on 14 January 2010 by the Chief Minister of Delhi, Mrs. Shiela Dixit.

[5] ILBS is an education which is focused on Liver and Biliary Sciences, however, Nephrology an important sister branch of the hospital.

[7] In the coronavirus pandemic, the institute was the pioneer in starting convalescent plasma therapy (an unproven and experimental procedure which is no longer recommended because of low benefit to harm ratio) for treating serious coronavirus patients in Delhi under the supervision of Dr Sarin.