ED arrests two former IL&FS executives in money laundering probehttps://indianexpress.com/article/business/ed-arrests-two-former-ilfs-executives-in-money-laundering-probe-5789172/

ED arrests two former IL&FS executives in money laundering probe

Former joint MD Arun K Saha and MD of transportation network K Ramchand were arrested late evening in Mumbai under the Prevention of Money Laundering Act (PMLA). These are the first arrests in this case by the Enforcement Directorate. 

ED arrests two former IL&FS executives in money laundering probe
According to the agency, IL&FS Financial Services Ltd had borrowings of more than Rs 17,000 crore from debt instruments and bank loans.

The Enforcement Directorate (ED) Wednesday arrested two former executives in connection with a money laundering probe in the IL&FS alleged financial irregularities case. Former joint MD Arun K Saha and MD of transportation network K Ramchand were arrested late evening in Mumbai under the Prevention of Money Laundering Act (PMLA). These are the first arrests in this case by the Enforcement Directorate.

The two will be produced before a special PMLA court in Mumbai on Thursday, they said.

Last month, the probe agency conducted searches at the offices and residences of four former directors of the IL&FS Group, in connection with its money laundering probe into the defaults by the shadow lender.

The central agency had filed a money laundering case in February this year and had twice raided a number of former executives in order to obtain additional evidence.  The debt crisis at the infrastructure lender came to light following a series of defaults by its group companies beginning September 2018.

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Earlier in February, ED had searched Ravi Parthasarthy, former chairman of IL&FS and former managing director Hari Sankaran and a few top officials of IL&FS Rail in connection with the money laundering case registered by the agency on February 19.

IL&FS has defaulted on payment of loans to SIDBI and along with its subsidiaries has a combined debt of over Rs 91,000 crore. 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.

(Inputs from PTI)