New Delhi, June 19: Two former top executives of the Infrastructure Leasing & Financial Services (IL&FS) have been arrested by the Enforcement Directorate (ED) in connection with the firm's probe in the money laundering case. The agency arrested the former Joint Managing Director of IL&FS financial services Arun K Saha, and the Managing Director of IL&FS transportation network K Ramachan. Hari Sankaran, Former IL&FS Vice Chairman, Arrested by Serious Fraud Investigation Office.
The SFIO (Serious Fraud Investigation Office) had earlier arrested Hari Shankaran and RC Bawa, and both are in judicial custody. The SIFO investigations revealed that the auditor Deloitte and Securities and Exchange Board of India (SEBI) failed to check the end use of the Non-Convertible Debentures (NCDs) raised by the IL&FS Financial Services. Ramesh Bawa, Former MD And CEO of IL&FS, Arrested by Serious Fraud Investigation Office.
According to SFIO, IL&FS has outstanding NCDs of more than Rs 25,000 crore, including NCDs of Rs 5,334 crore of 30 investors. IL&FS has total debts of Rs 91,000 crore and since then trying to sell assets to repay the debt after several defaults forced the government to overhaul its management.
The ED's case is based on an FIR filed before the Economic Offences Wing (EOW) of the Delhi Police in December last year. Ashish Begwani, Director of Enso Infrastructures (P) Ltd, had filed the case against officials of IL&FS Rail Ltd for allegedly causing Rs 70 crore loss to his company by fraudulent means.
Begwani had alleged in his complaint that in August 2010, he was approached by two officials of IL&FS Transportation Networks Ltd and he had invested Rs 170 crore in IL&FS Rail Ltd, a special purpose vehicle for Gurugram Metro project, in order to take its 15 per cent shares.
(With PTI Inputs)