Foundation is a vital element of a structural system, which helps to transfer the structural load to soil uniformly. Therefore, the strength and stability of structure depend on the behaviour and properties of soil. The collapse of any structure mainly due to the differential foundation settlement and also due to the punching shear failure is in the case of loose soil deposits. Geotechnical investigation is important to control the failure of any structures. It includes surface and sub-surface exploration of the site. The cost of site investigation depends on the size of the structure, built-up area and other factors. Even though approximately 30% of India consists of problematic soil, the scope of soil investigation is underestimated. This paper aims to focus on the impact of the inadequate soil investigation report on the structural stability and financial risk caused due to over-designed foundations. The forensic analysis of a recent building collapse in India and review of the foundation failure of a case study clearly show the result of limited site investigation. The study consists of the location of the site, details of failure, common reasons and the general remedial measures to be taken to control these failures.