The Serious Fraud Investigation Office (SFIO), arrested former IL&FS Financial Services Managing Director and CEO, Ramesh Bawa as part of its investigation into IL&FS fraudulent conduct case and causing wrongful loss to the company and its creditors.
This comes about two weeks after the SFIO arrested the company’s former Vice Chairman Hari Sankaran, who is currently lodged in Mumbai’s Byculla district jail.
Both the IL&FS executives – Bawa and Sankaran – were arrested under the Section 447 of the Companies Act that allows arrest for charges of fraud.
Recently, the incumbent government appointed IL&FS board had said that the company has a total exposure of Rs 18,800 crore, of which 10,700 crore is for external agencies while the remainder is with group companies.
The Enforcement Directorate (ED) is also said to be investigating the irregularities in IFIN.
In February, the ED had registered a case of money laundering against ILFS Rail, ILF Transportation Networks, Ravi Parthasarathy, Hari Sankaran and Ramesh Bawa.
IL&FS was incorporated in 1987, initially promoted by the Central Bank of India, Housing Development Finance Corporation and Unit Trust of India.